dao061209

On the homepage

Scanners

Full-body scanners headed for MSP

Out There

Gas lines

10 years later, same fire, anger

Club Outdoors

Behind closed doors

Home | Local + Metro | St. Paul

Swindler's parents plead guilty

The parents of scammer Kalin Dao had been facing federal tax charges. Their daughter pleaded guilty in May in the theft of as much as $10 million.

By DAN BROWNING, Star Tribune

Last update: June 12, 2009 - 10:33 PM

The parents of a Minneapolis woman who bilked millions of dollars from small investors and then gambled away their money at Las Vegas casinos pleaded guilty Thursday to federal tax charges.

The couple's 32-year-old daughter, Kalin Dao, pleaded guilty May 28 to conspiracy and money-laundering charges in what investigators described as a Ponzi scheme that stripped as much as $10 million from several hundred investors.

Her parents, Nghia Trong Dao, 58, and Thu Nguyet Thi Le, 52, each pleaded guilty to charges of filing false tax returns in plea bargains that will result in dismissal of 27 mail and wire fraud charges, as well as conspiracy and other tax charges.

Dao, an electrical engineer, faces a recommended sentence of six to 12 months in prison, up to three years on supervised release and $3,000 to $30,000 in fines for filing false tax returns in 2006 and 2007. He admitted to claiming business losses of $924,000 and nearly $2 million -- money that actually was lost by his daughter's investors.

Le graduated from high school in Vietnam and immigrated with her family to the United States in 1991. She went on to operate at least two restaurants the family had opened in Minneapolis. Le admitted to filing tax returns in 2005, 2006 and 2007 as a single head-of-household when she actually was married, and she claimed Kalin Dao as a dependent when her daughter actually had substantial income in those years. She faces a recommended sentence of six to 18 months.

Le's deal seemed as if it might fall apart when Assistant U.S. Attorney James Lackner questioned her about her crimes. Le told Judge Joan Ericksen that she claimed her daughter as a dependent on the advice of her accountant. She said she took care of Kalin, who is disabled with a profound limp, and attended to all of her needs.

Lackner asked if she had lied to her accountant about whether her daughter had substantial income.

"Actually, she didn't bring any money home and she didn't leave me any money," Le responded.

Lackner reminded her that she had opened a bank account for Kalin Dao's company, TD Financial Services, claiming she was the manager. "So you knew she was making money," he said.

After a brief consultation with her lawyer, Craig Cascarano, Le acknowledged that she had lied on her tax forms. Cascarano stipulated that "significant" sums of money were going through Kalin's bank account.

Nghia Dao also admitted to opening bank accounts for his daughter. He acknowledged that he knew what she was doing. His lawyer, Dennis Johnson, also stipulated that the money flow was significant.

Federal sentencing guidelines recommend 121 to 188 months in prison for Kalin Dao, largely because of the amount of loss. The statutory maximum for her crimes are five years for the conspiracy charge and 10 years for the money-laundering count. Though her parents face a fraction of that penalty, they, like their daughter, face the prospect of a lifetime of restitution payments to the victims of her scheme.

Dan Browning • 612-673-4493

Recent St. Paul stories

Capitol doors broken; suspect held - June 12, 2009

Capitol doors broken; suspect held - A 26-year-old St. Paul man was arrested Thursday afternoon after allegedly breaking three glass doors at the State Capitol, police said. More

More coverage

StarTribune.com: Steals + Deals & Classifieds

Learn how to do it right.

Simplify your job search by learning the best way to approach networking, resumes, cover letters, and interviewing.

Tips for getting more for less

Subscribe to the weekly Steals + Deals e-mail newsletter.

Win tickets to see Minneapolis New Breed featuring Lamb Lays with Lion, Mad King Thomas and SuperGroup at The Southern Theater.

Vita.mn presents an opening-night performance from Minneapolis New Breed featuring Lamb Lays with Lion, Mad King Thomas and SuperGroup at The Southern Theater on the Feb. 25.

See all contests