Infospec charged with fraud, tax evasion
Updated: October 14, 2009 11:13 AM
Richmond-based Infospec Systems Inc., and two locals, are now facing nine charges relating to the development and sale of electronic sales suppression software, the Canada Revenue Agency announced Friday.
Bradley Alvarez, communications manager for the revenue agency, said the local firm has been charged with one criminal count of fraud over $5,000, four counts under the income tax act relating to income tax evasion, and four counts under the excise tax act.
The software the company allegedly developed, commonly referred to as a zapper, is apparently designed to work with point-of-sale systems and electronic cash registers to erase sales records.
Also charged were David Au, a salesperson, and Cara Tang, a programmer, who are both of Richmond and were working for Infospec at the time of the allegations, which stem from the period between October 2000 and August 2008.
Infospec currently goes by the name Profitek, and is located at 2688 Shell Rd.
Late last year, five people were charged for allegedly evading income taxes including at North Vancouver's Honjin Sushi Japanese Restaurant.
The allegations come after an eight-month undercover operation by the RCMP in which investigators uncovered information that helped them obtain a search warrant in which Revenue Canada seized paper and electronic records from Infospec.
The prominent local developer of software is alleged to have knowingly provided four restaurants with computer programs designed to erase sales records.
Investigators said they posed as potential buyers of the software.
Infospec was founded in 1985 as a home-based software development company by Cindy Chan.
Chan said InfoSpec plans to defend itself against the charges.
“These allegations are very serious and we do not take them lightly. We vigorously deny all charges against us and are fully co-operating with the authorities as the investigation proceeds,” she said.
"In the meantime, InfoSpec Systems Inc. will continue to serve our customers in a variety of business sectors, providing them with legitimate software and quality solutions and support, as we have done for more than 24 years."
v2





