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.

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The Environmental Protection Agency issued a temporary waiver Friday under the Clean Air Act for using diesel with higher sulfur levels above the Arctic Circle in Alaska. In a letter to Gov. Mike Dunleavy, EPA Administrator Lee Zeldin said the 20-day waiver was meant to address fuel supply disruptions caused by the war in the Middle East.

“It is in the public interest to take action to address the extreme and unusual supply circumstances that prevent distribution of an adequate supply,” Zeldin wrote in the letter.

The Clean Air Act requires the use of cleaner burning ultra-low-sulfur fuel in highway and non-road vehicles and equipment. The fuel produces fewer emissions and does not damage modern engines.

Zeldin said much of the equipment used above the Arctic Circle still has engines designed for high-sulfur diesel. He said that some North Slope topping refineries, which separate diesel from crude oil and produce heating oil, can produce high-sulfur diesel to power that machinery, which could reduce the demand for diesel hauled into the region.

“Alaskans will no longer be forced to unnecessarily truck their fuel hundreds of miles across the state, and Alaskan families will feel lower prices at the pump,” Zeldin said in a prepared statement.

Fuel prices began to rise again earlier this month after the collapse of the ceasefire with Iran, with NPR reporting that prices were 86 cents higher per gallon than they were before the war. A new U.S. blockade of the Strait of Hormuz means prices could climb even higher.

Under Secretary of Energy Kyle Haustveit said during a roundtable in Anchorage that the waiver will allow for the production of tens of thousands more barrels of diesel.

“These topping units that have been restricted from an emission standpoint can now run at a higher output capacity,” Haustveit said. “It’s going to bring more supply to market.”

Sen. Dan Sullivan applauded the waiver and said he had advocated for it to lower fuel prices. He said in a press release that the action will allow North Slope producers to put idle refining capacity to work.

“Global fuel supply disruptions have been a significant challenge for Alaska communities, resulting in rising fuel prices,” Sen. Sullivan said in a prepared statement.

He said he measure “frees up Alaska-produced fuel to help put downward pressure on prices for hard-working Alaskans.”

The waiver is limited to highway and non-road vehicles and non-road equipment certified to operate on high-sulfur diesel fuel. It applies only above the Arctic Circle.

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