Thread: Restaurant owner sentenced on federal charges

http://www.midhudsonnews.com/News/Cheng ... Dec06.html

Restaurant owner sentenced on federal charges

Albany -- An Albany man who owns several Chinese restaurants – including ones in Kingston and Poughkeepsie – was sentenced in US District Court for the Northern District of New York Monday to 57 months in prison on a number of federal charges.

Kun Fuk (Stephen) Cheng, 42, of Albany, was also sentenced to forfeit monies and properties totaling $4.3 million and to pay restitution to the victims of the offenses in the amount of over $462,000. He was also found liable for $166,000 with his brother-in-law and associate, Hui Guo.

Cheng pleaded guilty on December 12, 2005 to conspiring to harbor aliens, unlawfully employing aliens, and conspiring to launder the proceeds of criminal activity. In one count, Cheng pleaded guilty to one count of filing a false and fraudulent income tax return.

All of the charges arose in connection with Cheng's ownership and operation of six different Dragon Buffet restaurants in Albany, Latham, Clifton Park, Rotterdam, Kingston and Poughkeepsie.

Through his plea agreement, Cheng acknowledged employing large numbers of undocumented workers, harboring them in residences he owned, paying them less than minimum wage with no benefits, and requiring them to work for as many as 72 hours a week. By running his restaurants in violation of the immigration and labor laws, Cheng generated extremely large profits from the six restaurants. In order to conceal the ownership, sources, control, and extent of these substantial profits, he also engaged in extensive and elaborate financial transactions, which included the creation and use of a network of nominee bank accounts, through which cash proceeds from the restaurants were passed, and the purchases in cash of valuable assets, including houses and vehicles, and further concealing those assets under other names or corporate names.

In addition to concealing his assets, Cheng maintained two separate sets of books for each restaurant.

For the four tax years 2000 through 2003, Cheng failed to report more than $10 million in gross receipts for the six restaurants, for which the tax due and owing was over $3.2 million.

Wonder what his fortune cookie read?

Originally Posted by jimpasz

Wonder what his fortune cookie read?

He got his fortune cookies mixed up with the Monoply set. So it read go to Jail, do not pass go.