Couple to pay $1M for sushi eatery tax crimes
The owners of an Orchard Lake restaurant have been ordered to pay nearly $1 million in restitution and serve five years probation for tax embezzlement and under-reporting their income, Michigan Attorney General Bill Schuette announced Thursday.
Christina and Dong Hyun Chang recently pleaded guilty to filing false monthly sales tax returns and bogus joint income tax returns, investigators said. They are scheduled to be sentenced Dec 15.
The Changs were charged after investigators with the Attorney General and Treasury departments probed whether their eatery, Sushi Samurai Inc., used an illegal point of sale sales suppression software.
The investigation found that the sales in Sushi Samurai’s records were significantly higher than those reported to the state and that thousands of receipts were deleted through “zapper” software, Schuette’s office said in a statement.
Authorities also allege the Changs embezzled more than $170,000 in sales tax receipts, failed to report than $2.5 million in income tax filings between 2012-2016 and used the money for business and personal expenses.
The business pleaded guilty last month. The Changs must now pay $980,479.59 in restitution on its behalf through monthly increments of $7,500.
“I am pleased to see these individuals and their company taking responsibility for their actions,” Schuette said Thursday. “This case should serve as an example to others that breaking the law for personal gain has consequences.”