The ownership of two campus-area liquor stores is under review this week as a city committee hears Jongyean Lee?s application for ownership of Riley?s Wines of the World and Vineyard Liquor. Lee is applying for ownership following the guilty plea to tax evasion her husband — and present owner — entered earlier this year.

Hyungirl Lee pleaded guilty in federal court Feb. 26 to one count of filing a false income tax return. Between 1994 and 1997, Hyungirl Lee filed a taxable income of $107,761, underreporting his tax liability by $476,980.

The Alcohol License Review Committee is set to hear the family?s application for ownership change Wednesday.

According to Assistant U.S. Attorney Daniel Graber, Hyungirl Lee reported on a 1995 tax form that Riley?s Wines of the World, 402 W. Gorham St., had gross receipts of $6,241 and a net income of $5,800 after expenses. According to Hyungirl Lee, in that same year, Vineyard Food Mart, 626 University Ave., had gross receipts in excess of $390,000, but a net income of only $367.

Hyungirl Lee told IRS agents he had bank deposits of $5.2 million from 1994-1997, but an IRS investigation of his 12 bank accounts revealed he had made deposits of $12.4 million.

Graber said bank tellers interrogated by the IRS recalled that Hyungirl Lee came into the bank carrying a backpack from which he pulled bundles of cash.

Hyungirl Lee has agreed to pay a $50,000 fine and to cooperate with the IRS.

Federal Judge Barbara Crabb is scheduled to sentence Hyungirl Lee May 9. He could face up to three years in prison and three years on supervised release.

According to Ald. Mike Verveer, District 4, city officials are concerned the license transfer could shelter the businesses from the IRS.

“The ALRC may be hesitant to act on this transfer request without information from federal officials,” Verveer said.

The ALRC will possess a full report by Wednesday?s meeting from the city attorney?s office regarding the ramifications of the license transfer.

Ald. Tim Bruer, District 14, said he is hopeful the ALRC will be able to take action Wednesday, but unforeseen legal entanglements necessitating further review could delay action to the ALRC?s next meeting May 9.

Bruer said once the ALRC has legal guidance it would make a determination based on factors including the police department?s report and the quality of Mrs. Lee?s management.

“In spite of Mr. Lee?s legal problems, we will walk in with an open mind,” Bruer said.

Jongyean Lee declined to comment on the matter.