LANSING, MI – Michigan Attorney General Bill Schuette today announced he had filed over 100 felony charges against Christina and Dong Hyun Chang, of Orchard Lake, and their business Sushi Samurai, Inc. for embezzling over $100,000 in sales tax paid by their customers and by underreporting their income by over $100,000.
Schuette filed the following charges against both Dong Hyun and Christina Chang and their restaurant Sushi Samurai, Inc. in Oakland County’s 48th District Court:
One count of Embezzlement over $100,000, a felony punishable by a maximum term of up to 20 years in the state prison and/or a fine up to $50,000, or 3 times the amount embezzled, whichever is greater; One count of Conspiracy to Embezzle over $100,000, a felony punishable by up to 20 years in the state prison and a $10,000 additional fine; One count of Possession of an automated sales suppression device, a felony punishable by 1-5 years in prison; 59 counts of filing false monthly sales tax returns, a felony punishable by up to 5 years and/or a $5,000 fine, and; Five counts of filing false joint income tax returns, punishable by up to 5 years and/or a $5,000 fine.
“If the allegations are true, these individuals intentionally possessed illegal software to steal from the State of Michigan for nothing more it seems than personal greed,” said Schuette. “No one is above the law and those who believe they are will continue to face the consequences.”
Dong Hyun, 46, and Christina Chang, 51, were arrested on outstanding warrants on Thursday, April 20, 2017. The Changs and their restaurant Sushi Samurai were arraigned late Thursday afternoon before Magistrate Julie Nelson-Klein in the 48th District Court.
Bond was set at $1 million cash/surety on 65 felony counts for both Changs and $100,000 personal recognizance bond was set for their business Sushi Samurai. As a condition of bond both Dong Hyun and Christina must surrender their passports and wear a GPS tether monitors. Their next court appearance is a pre-exam conference before Judge Kimberly Small at 9:00 on May 1, 2017 at the 48th District Court in Bloomfield Hills.
The Changs were charged after a joint investigation by the Department of Attorney General and the Department of Treasury.
During the investigation, it was determined that the sales in Sushi Samurai’s records were allegedly significantly higher than those reported to the state. The “zapper” software essentially deletes sales from the Point of Sale records (usually a cash register). This is allegedly what the Changs did to their sales after the audit. It is alleged that thousands of sales receipts had been deleted.
After further investigation it was determined that in total the Changs allegedly 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.