ST PAUL, Minn. — A couple from Hennepin County are charged with 26 felony counts of falsifying their tax returns from the restaurants they owned, according to documents filed June 9.
“Ghost owners” Sufeng Zheng, of Plymouth, and Ting Gui Zheng, of Maple Grove, used computer software to suppress sales transactions to underreport sales tax on Teppanyaki Grill & Supreme Buffet’s tax returns between May 2016 and October 2018, according to the criminal complaint.
The complaint further alleges that the Zhengs also acted as four different business entities, who also face tax fraud crimes.
But court documents say the de facto owners received help from a third party, Ming Zhu, of Blaine.
Zhu has been charged with eight felony counts of aiding or assisting in the filing of false or fraudulent sales tax returns, and one felony count of theft-by swindle.
The Minnesota Department of Revenue’s analysts estimate that the two restaurants combined underpaid more than $810,000 in sales tax and underreported up to $10.7 million in overall sales between May 2014 and October 2019.
The State of Minnesota imposes sales tax on most retail sales, and restaurants are required to report sales tax returns to the MDOR monthly, quarterly or yearly, depending on the amount.
The Zhengs and Zhu however, did not do so properly.
The complaint alleges that investigators found double sets of sales reports during a search warrant executed at the Zhengs' home.
The first court hearings for the Zhengs and Ming Zhu are set for June 28, and if convicted, each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both. The theft-by swindle felony has a 20-year-maximum in prison and/or a $100,000 fine.
The Teppanyaki restaurants will remain open as the owners face the criminal charges.
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