- Associated Press - Wednesday, March 15, 2017

LOS ANGELES (AP) - Two sisters who are CEOs of sewing companies that are subcontracted by True Religion jeans have been sentenced for conspiring with their accountant to hide tens of millions in payroll to avoid paying for workers’ compensation insurance.

Sung Hyun Kim and Caroline Choi, CEOs of Meriko, Inc. and SF Apparel, Inc., were sentenced Tuesday in a court in Los Angeles.

Kim, who pleaded no contest in December to workers’ compensation fraud, was sentenced to two years of either jail or electronic monitoring and two years of probation.

Choi was sentenced to one year of jail or electronic monitoring and five years of probation for failing to pay payroll taxes.

The accountant, Jae Kim, received the same sentence as Choi.

Restitution of $4.6 million has already been paid in the case.

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