California restaurateurs linked to $5.8 M workers’ comp. fraud case

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An Orange County, Calif., couple who run a pair of Japanese-cuisine restaurants face 14 felony counts including workers’ compensation insurance fraud and tax evasion.

Simon Sungheok Hong and his wife, Katie Kyanghee Shinn, both 42, of Coto De Caza, Calif., surrendered to authorities and were arraigned on the charges Nov. 16, according to the Riverside County District Attorney’s Office.

The couple operated Maki Maki, California Japanese Cuisine with locations at the Irvine Spectrum and The River at Rancho Mirage.

An investigation found that the pair knowingly underreported payroll to their workers’ compensation carrier, which was not named, and the state’s Employment Development Department, according to the district attorney’s office. Hong and Shinn also knowingly underreported sales tax revenue to the California Board of Equalization, authorities said.

The total estimated loss to all the agencies is $2.9 million. With penalties and interest assessed, that sum becomes $5.8 million, according to the district attorney’s office.

In October, Hong and Shinn abruptly closed both restaurants without notifying the landlords or paying employees. The couple also vacated their home.

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