Thread: Ocean City: Chinese IA' rest. owners arrested for harboring

delmarvanow.com

June 3, 2008

OCEAN CITY: Restaurant owners plead guilty to tax evasion, employing illegals

Daily Times Staff Report

BALTIMORE — A couple who owned two restaurants in West Ocean City pleaded guilty today to tax evasion and employing illegal aliens in the U.S. District Court.

Bo Hao Zhu, 33, and wife Siu Ping Cheng, 30, both of Ocean City, owned an operated Miyako Sushi and Seafood Buffet and Panda China Buffet restaurants in West Ocean City.

Their firm, Zhu & Partners, LLC, pleaded guilty to alien harboring and inducing aliens to reside in the United States.

Zhu & Partners faces a fine of $250,000, or twice the gross gain or loss caused by its conduct, together with costs of prosecution.

Zhu faces a maximum sentence of five years in prison for employment tax evasion and a fine of $250,000, or twice the gross gain or loss caused by his conduct, together with costs of prosecution.

Cheng faces a maximum sentence of six months in prison for unlawful employment of illegal aliens and a fine of $3,000 for each unauthorized alien employed.

As part of their plea agreement, the defendants agreed to forfeit their interests in the Miyako property at 12902 Ocean Gateway Highway.

U.S. District Judge Andre M. Davis indicated that the sentencing hearing will be held in September, but no specific date has been set.

According to their plea agreements announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein, Zhu & Partners purchased the Miyako property for $2,300,000 in September 2004.

In February 2005, a bank employee observed Siu Ping Cheng depositing large amounts of cash into Panda Buffet’s accounts. Over several months, ICE agents also observed several individuals, believed to be illegal immigrants, traveling in Bo Hao Zhu’s vehicle from Panda Buffet, where they worked, to Zhu and Cheng’s condominium.

A review of immigration records in June 2006 revealed that six of 11 occupants of the condominium who were employees of Panda Buffet were in the country illegally.

In June 2007, agents established that four of eight employees working at both restaurants were in the country illegally, according to the U.S. attorney.

Zhu and Cheng had knowingly hired these illegal aliens and paid them in cash for less wages than the law required. From 2005 to 2007, Zhu & Partners, LLC concealed numerous illegal aliens from detection in residences and businesses it owned and rented.

During 2007, Zhu paid wages to employees of his restaurants, resulting in employment taxes owed to the government of $6,798.10. Zhu failed to pay the employment tax and provided false information to the IRS concerning wages paid to employees, according to the U.S. attorney.

Uncle Sam sure empty this guys rice bowl

UPDATE



Couple cuts federal plea bargain with Fed

Ocean City pair pleads guilty to tax evasion charges, harboring illegal aliens

By Earl Holland
Staff Writer

SALISBURY -- A couple who owned two West Ocean City restaurants that were raided last year made a plea bargain with the federal government Tuesday.

Bo Hao Zhu, 33, and his wife, Siu Ping Cheng, 30, both of West Ocean City, pleaded guilty to evading taxes and unlawfully employing illegal aliens at the Miyako Sushi and Seafood Buffet and Panda China Buffet, the U.S. Department of Justice said.

According to U.S. District Court documents, the couple's company, Zhu & Partners LLC, pleaded guilty to harboring an illegal alien and inducing illegal aliens to reside in the country.

Last fall, Immigration and Customs Enforcement agents raided the restaurants and the couple's West Ocean City condominium. The raids resulted in the arrests of six illegal aliens and the temporary closure of the two dining establishments.

ICE's investigation into the couple began in 2005 after a bank employee saw Cheng depositing large amounts of money into the Panda Buffet's accounts. As the investigation progressed, ICE discovered Zhu and Cheng had been concealing the six illegal immigrants from government detection at the restaurants and condominium.

In addition to the harboring of the aliens, Zhu failed to pay $6,798 in owed employment taxes to the government and provided false information to the Internal Revenue Service concerning wages paid to restaurant employees.

"Employers who do not withhold employment taxes are victimizing legitimate businesses by creating an unfair competitive advantage over those businesses that lawfully pay their share of employment taxes," said C. Andre Martin, IRS special agent in charge.

As a result of the plea deal, Zhu potentially faces a maximum of five years in prison and a fine of $250,000 for the tax evasion charges; Cheng faces a maximum sentence of six months in jail for the unlawful employment of illegal aliens and a maximum fine of $3,000 for each illegal alien who committed the violation. Zhu & Partners, LLC faces a fine of $250,000 as well as legal fees.

Also as part of the agreement, Zhu and Cheng will forfeit the property former Miyako property, now known as the Asian Fusion restaurant, to the U.S. government, court documents said.

Andre Davis, the U.S. District Court judge presiding over the case, has indicated that Zhu and Cheng will be sentenced in September.

eholland@dmg.gannett.com

410-845-4633

September 12, 2008


FORFEITING $2M: OC restaurant operators sentenced in scheme to hire, harbor aliens

A Daily Times Staff Report

BALTIMORE — U.S. District Judge Andre M. Davis on Friday sentenced Ocean City husband and wife Bo Hao Zhu, 33, and Siu Ping Cheng, 30, to 18 months probation each for evading taxes and unlawfully employing aliens, respectively, in connection with illegal aliens working at two Ocean City restaurants, U.S. Attorney for the District of Maryland, Rod J. Rosenstein, announced.

Davis also ordered Zhu & Partners, LLC to pay a $50,000 fine for alien harboring and inducing aliens to reside in the United States, Rosenstein said.

Defendants also must forfeit their interests in property worth over $2 million, located at 12902 Ocean Gateway Highway in Ocean City, Rosenstein also said.

According to their plea agreements, Bo Hao Zhu owned and operated the Miyako Sushi and Seafood Buffet (Miyako) and Panda China Buffet (Panda Buffet) restaurants in Ocean City. In September 2004, Zhu & Partners, LLC purchased 12902 Ocean Gateway Highway, where Miyako is located, for $2.3 million, Rosenstein said. Panda Buffet is located at 12641 Ocean Gateway Highway.

In February 2005, a bank employee observed Siu Ping Cheng depositing large amounts of cash into Panda Buffet’s accounts, according to Rosenstein.

Over several months, ICE agents also observed several individuals, believed to be illegal immigrants, traveling in Bo Hao Zhu’s vehicle from Panda Buffet, where they worked, to Zhu and Cheng’s condominium, he said.

A review of immigration records in June 2006 revealed that six of 11 occupants of the condominium who were employees of Panda Buffet were in the country illegally, Rosenstein said. In June 2007, agents established that four of eight employees working at both restaurants were in the country illegally, he also said.

Zhu and Cheng had knowingly hired these illegal aliens and paid them in cash for less wages than the law required. From 2005 to 2007, Zhu & Partners, LLC concealed numerous illegal aliens from detection in residences and businesses it owned and rented, he said.

In 2007, Zhu paid wages to employees of his restaurants, resulting in employment taxes owed to the government of $6,790, according to Rosenstein. Zhu failed to pay employment taxes, and provided false information to the IRS concerning wages paid to his employees, the attorney said.

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