A federal grand jury in Montgomery, Alabama, has indicted Foster Dai, also known as Fa Dai, on charges of filing false tax returns and failing to report foreign bank accounts. The indictment was issued on September 10, 2024, but was unsealed this week. This announcement was made by 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.
The indictment claims that Dai, a dual citizen of China and the United States who previously lived in Auburn, Alabama and worked as a professor at Auburn University’s Electrical Engineering Department, served as a corporate executive officer for Shenzhen NRT Co., Ltd., located in China. It is alleged that he used accounts with China Merchants Bank and Industrial & Commercial Bank of China to receive payments from at least five entities in China without reporting this income on his federal tax returns from 2018 through 2020.
According to U.S. law, citizens and residents with financial interests or authority over foreign bank accounts exceeding $10,000 must file a "Report of Foreign Bank and Financial Accounts" (FBAR) with the U.S. Treasury. The indictment alleges that Dai failed to submit these required reports for certain accounts in 2018 and 2020.
It is important to note that an indictment merely suggests that crimes have been committed; all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Dai could face up to five years in prison and a fine of up to $250,000. A federal district court judge will determine any sentence after reviewing the U.S. Sentencing Guidelines along with other statutory factors.
The investigation involved agents from IRS Criminal Investigation and the FBI, with support from the United States Department of the Army Criminal Investigation Division. Auburn University cooperated fully during the investigation process. Assistant United States Attorney Megan A. Kirkpatrick is handling the prosecution.