Michigan Attorney General Bill Schuette last Thursday announced that Dong and Christina Chang, the owners of Sushi Samurai Inc. in Orchard Lake, have been ordered to pay restitution and were given a delayed sentencing date of October 11, 2018.
The Changs were ordered to pay $980,479.59 in restitution, joint and several with each other and Sushi Samurai, an amount of $386,000,which was seized, will be applied to restitution. The Changs are required to make payments of $7,500 per month toward restitution on the balance.
“I hope this case serves as a reminder to others that breaking the law comes with consequences,” said Schuette. “I want to thank my Corporate Oversight Division and the Department of Treasury for their efforts on this case.”
Dong and Christina Chang were sentenced on two counts each, one count of filing false monthly sales tax returns and one count of filing false joint income tax returns before Oakland County Circuit Court Judge Phyllis McMillen.
The Chang’s restaurant, which is registered as an LLC, was sentenced in November 2017.
The Changs were charged after a joint investigation by the Department of Attorney General and the Department of Treasury into whether the restaurant was using an illegal Point of Sale (POS) sales suppression software.
During the investigation, it was determined that the sales in Sushi Samurai’s records were significantly higher than those reported to the state. The “zapper” software essentially deletes sales from the POS records. It was determined that thousands of sales receipts had been deleted.
After further investigation, it was determined that in total the Changs via their business embezzled over $170,000 in sales tax receipts alone. In addition, over $2.5 million in sales were allegedly never reported or accounted for in income tax filings between 2012-2016. The Changs used this money for business and personal expenses.
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