Seven restaurant owners have been sentenced and ordered to pay nearly $12 million dollars in restitution to their victims.

A California Department of Justice led Task Force executed 27 search warrants at multiple locations in Los Angeles County, and seven individuals were charged in separate complaints with wage theft, tax evasion, insurance fraud, and/or commercial burglary.

California Department of Justice’s (DOJ) Tax Recovery in the Underground Economy (TRUE) Task Force prosecuted the cases in partnership with multiple state agencies including the California Department of Tax and Fee Administration (CDTFA), Employment Development Department (EDD), Franchise Tax Board (FTB), California Department of Insurance (CDI), and the Department of Industrial Relations (DIR).

The details on the cases are as follows:

– – Xu Dong, the owner of Asia Buffet and Americana Buffet and Grill, pleaded guilty to wage theft, sales tax evasion, income tax evasion, payroll tax evasion, and insurance fraud. He paid more than $3.94 million restitution and was sentenced to 32 months in prison.
– – Yan Zheng, the owner of China Great Buffet, pleaded guilty to sales evasion, income tax evasion, payroll tax evasion, and insurance fraud. She paid more than $2.81 million restitution and was sentenced to 24 months in prison.
– – Jiahan Zheng, the owner of Tropical Buffet and Grill, pleaded guilty to sales tax evasion, income tax fraud evasion, and payroll tax fraud evasion. He paid $599,508 restitution and was sentenced to one year probation and ordered to complete 60 days of community service
– – Elva Chen, Ya Lu, and Yituan Chen owned and operated Gold Hibachi Buffet. Elva Chen pleaded guilty to sales tax evasion, income tax evasion, payroll tax evasion and insurance fraud. She paid over $1.67 million in restitution and was sentenced to 32 months in prison. Defendant Ya Lu pleaded guilty to grand theft and commercial burglary. She paid nearly $1.7 million restitution and was sentenced to 32 in prison. Defendant Yituan Chen pleaded guilty to sales tax evasion. He paid $428,226 restitution, and was sentenced to two years formal probation and ordered to serve 364 days in prison.
– – Jian Zhang, the owner of Kami Buffet and Grill, pleaded guilty to sales tax evasion and income tax evasion. He paid $785,177 restitution and was sentenced to 32 months in prison.

The sentences were the result of an investigation by DOJ, CDTFA, EDD, FTB, CDI and DIR. DOJ, CDTFA, FTB and EDD are a part of the (TRUE) Task Force. The TRUE Task Force was created to ensure multiagency collaboration and to combat wage theft, tax evasion, and other crimes in the underground economy. The task force consists of attorneys, investigators, and special agents from the member agencies.

7 Restaurant Industry Convictions for Insurance Fraud and Wage Theft