Two Korean American executives of C’est Toi Jeans Inc. (CTJ), a wholesale clothing company in LA’s Fashion District, were sentenced to federal prison and ordered to pay more than $50 million in fines and restitution for tax evasion and money laundering, according to the U.S. Attorney’s Office for the Central District of California.
On September 29, 2025, U.S. District Judge Mark C. Scarsi sentenced Si Oh Rhew (71, La Cañada Flintridge) to 103 months (8 years, 7 months) in prison, a fine of $8 million, and more than $19 million in restitution. Lance Rhew (38, Los Angeles) was sentenced to 84 months (7 years), a $500,000 fine, and restitution. CTJ, which was co-owned by Rhew and his wife, was placed on five years of probation, fined $11.5 million, and ordered to pay more than $15 million in restitution.
Prosecutors said the Rhews undervalued imported apparel by more than $51 million, avoiding about $8.4 million in customs duties. Investigators also found CTJ disguised drug trafficking proceeds as customer invoice payments, failed to report cash transactions over $10,000, and concealed more than $17 million in sales from tax returns. The company sent 515 wire transfers totaling $137,156,726 to overseas suppliers.
A jury found the defendants guilty in October 2024 of multiple charges, including conspiracy, filing false customs documents, money laundering, and aiding in the preparation of false tax returns. Some additional counts were dismissed.
The case was investigated by Homeland Security Investigations (HSI), IRS-Criminal Investigation, and U.S. Customs and Border Protection, with assistance from several local police departments. The Department of Justice said the prosecution was part of Operation Take Back America, a nationwide initiative targeting money laundering, cartels, and transnational crime.
BY YOONJAE JUNG [jung.yoonjae@koreadaily.com]
