A 70-year-old Seattle real estate owner was sentenced to prison for tax evasion and filing false tax returns.
Steven Loo was convicted following a nine-day trial and ordered to spend 20 months in prison for his $4.7 million tax evasion scheme, according to the U.S. Attorney’s Office.
“Mr. Loo made a sustained, willful decision to evade taxes. The only thing that explains that is greed,” First Assistant U.S. Attorney Neil Floyd stated. “A man who amasses $43 million in wealth can afford to pay his taxes — just like the 85% of us who pay our taxes fully and on time.”
Loo owned and operated multiple commercial real estate properties in western Washington and California, according to records filed in the case. He hired property management companies to manage the properties, and had the companies send profit from the properties to two bank accounts in the name of shell companies he controlled.
Loo hid real estate profits through shell companies, claimed zero tax for 20 years
Loo spent the money for his benefit and for his friends and family. He also re-invested funds in various businesses he controlled. However, Loo did not declare that income— over $4.7 million — on his tax returns. He used shell companies and repeated transfers of funds to conceal the income from the IRS, according to records filed in the case.
“At trial, the government presented evidence detailing the eight properties operated by Loo via various limited liability companies (LLCs),” the attorney’s office stated. “The income from the LLCs was funneled into bank accounts associated with two specific inactive entities that were established in Washington in 1999. Loo did not report this income to the IRS. Loo failed to inform his tax return preparer of these funds that were income from his properties.”
Loo claimed he owed no tax at all over 20 years and even claimed a net refund from the IRS.
“Loo is living the American dream yet believes he has no obligation to pay the taxes that support our nation,” prosecutors said in asking for a 51-month sentence. “Loo was not content with merely failing to report his income. Instead, he contrived a plan to hide his wealth from the IRS using shell companies and money-routing schemes. When Loo’s luck ran out, and an IRS criminal investigator knocked on his door, he continued his deception by trotting out a fairy tale about using imaginary losses to offset his income.”
Along with serving prison time, Loo must also pay a $250,000 fine and serve three years of supervised release following his prison term. The attorney’s office noted Loo has already paid back taxes to the IRS of $1,603,686.
This story was originally posted on MyNorthwest.com
Follow Julia Dallas on X. Read her stories here. Submit news tips here.
©2026 Cox Media Group
