United States of America v. Foster Dai

Montgomery, Alabama, criminal defense lawyer represented the Defendant charged with Filing False Tax Returns and Failing to Report Foreign Bank Accounts

Dual Citizen of China and the United States Indicted for Filing False Tax Returns and Failing to Report Foreign Bank Accounts

A federal grand jury in Montgomery, Alabama, has indicted Foster Dai, also known as Fa Dai, a dual citizen of China and the United States, on charges of filing false tax returns and failing to file a report of a foreign bank or financial account. The indictment was handed down on September 10, 2024, but unsealed this week. Acting United States Attorney Kevin Davidson, Special Agent in Charge Demetrius Hardeman with the IRS Criminal Investigation Atlanta Field Office, and Special Agent in Charge Paul Brown with the FBI Mobile, Alabama Field Office made the announcement.



According to the indictment, 60-year-old Dai, who previously resided in Auburn, Alabama and was a former professor in the Electrical Engineering Department of Auburn University, is alleged to have been a corporate executive officer of Shenzhen NRT, Co., Ltd., based in the People's Republic of China (PRC). The indictment alleges that Dai used accounts with China Merchants Bank and Industrial & Commercial Bank of China to receive payments from at least five entities in the PRC. The indictment alleges that Dai failed to report that income on his federal tax returns for 2018 through 2020.



In addition to the obligation to report foreign income for tax purposes, the indictment notes that United States citizens and residents who have a financial interest in, or signature or other authority over, a bank account in a foreign country with an aggregate value of more than $10,000 at any time during a particular calendar year, are required to file a "Report of Foreign Bank and Financial Accounts” (FBAR) with the United States Treasury. The indictment alleges that Dai failed to file the required FBAR reports for the Industrial & Commercial Bank of China account in 2018, and the China Merchants Bank account in 2020.



Agents with IRS Criminal Investigation and FBI investigated the case, with assistance from the United States Department of the Army Criminal Investigation Division. Auburn University fully cooperated with law enforcement and the U.S. Attorney's office during the investigation. Assistant United States Attorney Megan A. Kirkpatrick is prosecuting this case.