O.C. owners of Irvine Spectrum restaurant accused of tax fraud

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The Orange County owners of Maki Maki, a Japanese restaurant at the Irvine Spectrum Center, were arraigned Monday on charges of tax evasion and workers? compensation insurance fraud.



Simon Sungheok Hong and his wife, Katie Kyanghee Shinn, both of Cota De Caza, are accused of shorting their insurance carrier and the state as much as $5.8 million with penalties and interest. The also own a restaurant in Rancho Mirage.



?The owners of Maki Maki are accused of underreporting their payroll to the State Compensation Insurance Fund and the Employment Development Department, as well as under-reporting sales tax revenue to the state Board of Equalization,? the Desert Sun reported.



Last month, Hong and Shinn abruptly closed both Maki Maki restaurants without notifying the landlords or paying employees of the businesses. The couple also vacated their home in the affluent Coto De Caza community of South Orange County.



<a href="http://fastfood.freedomblogging.com/2009/11/16/oc-owners-of-irvine-spectrum-restaurant-accused-of-tax-fraud/42307/">http://fastfood.freedomblogging.com/2009/11/16/oc-owners-of-irvine-spectrum-restaurant-accused-of-tax-fraud/42307/</a>
 
More on the topic: <a href="http://www.ocregister.com/news/shinn-219673-couple-hong.html">http://www.ocregister.com/news/shinn-219673-couple-hong.html</a>



Favorite line from the article:



"A former restaurant accountant told authorities that Shinn preferred to pay employees in cash rather than pay higher payroll taxes, according to the warrant for their arrest." (Being Asian, I have no idea what is wrong with that)



Between this and those O.C. housewives, explain to me why any one wants to live in Coto again?



Went to the Irvine one once for the happy hour...sushi chef was nice...food was okay...would probably never go there if it was full price.
 
What is the use of taking their passports? Without a passport, can people just drive to Mexico and take a charter flight elsewhere to leave North America? Or I watched too many cheap movies?
 
Overall, there are so many people ripping off the government by accepting only cash. Just head over to Little Saigon and try buy lunch with a credit card. I recently went to a very large and very busy Pho restaurant in Fountain Valley and I just casually handed the hostess my credit card without thinking, she looked at me and pointed to the ATM right next to the cash register. How much more obvious could it be? The government could make a lot of money by simply sending IRS employees out to locate "cash only" businesses, that is where the fraud is.
 
[quote author="tmare" date=1258517824]Overall, there are so many people ripping off the government by accepting only cash. Just head over to Little Saigon and try buy lunch with a credit card. I recently went to a very large and very busy Pho restaurant in Fountain Valley and I just casually handed the hostess my credit card without thinking, she looked at me and pointed to the ATM right next to the cash register. How much more obvious could it be? The government could make a lot of money by simply sending IRS employees out to locate "cash only" businesses, that is where the fraud is.</blockquote>


They are the FCBs making the land baron very wealthy and priced the honest tax payer folks out of an Irvine house. Your and my pho cash go directly into the infamous sack.
 
[quote author="bkshopr" date=1258520799][quote author="tmare" date=1258517824]Overall, there are so many people ripping off the government by accepting only cash. Just head over to Little Saigon and try buy lunch with a credit card. I recently went to a very large and very busy Pho restaurant in Fountain Valley and I just casually handed the hostess my credit card without thinking, she looked at me and pointed to the ATM right next to the cash register. How much more obvious could it be? The government could make a lot of money by simply sending IRS employees out to locate "cash only" businesses, that is where the fraud is.</blockquote>


They are the FCBs making the land baron very wealthy and priced the honest tax payer folks out of an Irvine house. Your and my pho cash go directly into the infamous sack.</blockquote>


But wait...aren't those the guys who are supposed to save the real estate market?



Cash businesses are no different than business who employ illegal immigrants...it's wink wink nod nod between the government and the businesses.
 
[quote author="IrvineCommuter" date=1258521522][quote author="bkshopr" date=1258520799][quote author="tmare" date=1258517824]Overall, there are so many people ripping off the government by accepting only cash. Just head over to Little Saigon and try buy lunch with a credit card. I recently went to a very large and very busy Pho restaurant in Fountain Valley and I just casually handed the hostess my credit card without thinking, she looked at me and pointed to the ATM right next to the cash register. How much more obvious could it be? The government could make a lot of money by simply sending IRS employees out to locate "cash only" businesses, that is where the fraud is.</blockquote>


They are the FCBs making the land baron very wealthy and priced the honest tax payer folks out of an Irvine house. Your and my pho cash go directly into the infamous sack.</blockquote>


But wait...aren't those the guys who are supposed to save the real estate market?



Cash businesses are no different than business who employee illegal immigrants...it's wink wink nod nod between the government and the businesses.</blockquote>


Check the kitchen way at the back by the exit door you will find illegal immigrants doing the food prep and dishes. Sack cash merchants violate both laws.
 
[quote author="bkshopr" date=1258525203][quote author="IrvineCommuter" date=1258521522][quote author="bkshopr" date=1258520799][quote author="tmare" date=1258517824]Overall, there are so many people ripping off the government by accepting only cash. Just head over to Little Saigon and try buy lunch with a credit card. I recently went to a very large and very busy Pho restaurant in Fountain Valley and I just casually handed the hostess my credit card without thinking, she looked at me and pointed to the ATM right next to the cash register. How much more obvious could it be? The government could make a lot of money by simply sending IRS employees out to locate "cash only" businesses, that is where the fraud is.</blockquote>


They are the FCBs making the land baron very wealthy and priced the honest tax payer folks out of an Irvine house. Your and my pho cash go directly into the infamous sack.</blockquote>


But wait...aren't those the guys who are supposed to save the real estate market?



Cash businesses are no different than business who employee illegal immigrants...it's wink wink nod nod between the government and the businesses.</blockquote>


Check the kitchen way at the back by the exit door you will find illegal immigrants doing the food prep and dishes. Sack cash merchants violate both laws.</blockquote>


This is definitely true of the larger establishments that actually have employees that are not family members.
 
Family members == child labor violation, senior abuse, etc..



If you don't want to support the cash-only business, go somewhere else. Apparently, part of the money goes to the patrons who got a nice discount whenever they go.



What is the deal with some gas station that charge me more if I use a credit card? It is so unfair!



(I pay cash, to take advantage of the cheaper gas, BTW)
 
[quote author="Astute Observer" date=1258531477]What is the deal with some gas station that charge me more if I use a credit card? It is so unfair!



(I pay cash, to take advantage of the cheaper gas, BTW)</blockquote>


They are charging you what the Visa/MC/Discover/AMEX charge them to process the transaction. It's usually 3% minimum.
 
[quote author="Astute Observer" date=1258531477]Family members == child labor violation, senior abuse, etc..



If you don't want to support the cash-only business, go somewhere else. Apparently, part of the money goes to the patrons who got a nice discount whenever they go.



What is the deal with some gas station that charge me more if I use a credit card? It is so unfair!



(I pay cash, to take advantage of the cheaper gas, BTW)</blockquote>


I use my credit card to buy Arco gift cards at CVS and get 5% back. That extra $5 a month really makes me feel rich.
 
[quote author="IrvineCommuter" date=1258516656]



Favorite line from the article:



"A former restaurant accountant told authorities that Shinn preferred to pay employees in cash rather than pay higher payroll taxes, according to the warrant for their arrest." <strong>(Being Asian, I have no idea what is wrong with that)</strong></blockquote>


Because tax evasion is a crime?
 
[quote author="Nude" date=1258532982][quote author="Astute Observer" date=1258531477]What is the deal with some gas station that charge me more if I use a credit card? It is so unfair!



(I pay cash, to take advantage of the cheaper gas, BTW)</blockquote>


They are charging you what the Visa/MC/Discover/AMEX charge them to process the transaction. It's usually 3% minimum.</blockquote>


really, while they probably are cheating on their taxes, it is certain that VISA is reaming them on fees.



for small transactions at small businesses, the fees plus the terminal rentals kill them, i'm sure.
 
[quote author="freedomCM" date=1258536106][quote author="Nude" date=1258532982][quote author="Astute Observer" date=1258531477]What is the deal with some gas station that charge me more if I use a credit card? It is so unfair!



(I pay cash, to take advantage of the cheaper gas, BTW)</blockquote>


They are charging you what the Visa/MC/Discover/AMEX charge them to process the transaction. It's usually 3% minimum.</blockquote>


really, while they probably are cheating on their taxes, it is certain that VISA is reaming them on fees.



for small transactions at small businesses, the fees plus the terminal rentals kill them, i'm sure.</blockquote>


I call them "my silent partner".
 
[quote author="ABC123" date=1258533193][quote author="Astute Observer" date=1258531477]Family members == child labor violation, senior abuse, etc..



If you don't want to support the cash-only business, go somewhere else. Apparently, part of the money goes to the patrons who got a nice discount whenever they go.



What is the deal with some gas station that charge me more if I use a credit card? It is so unfair!



(I pay cash, to take advantage of the cheaper gas, BTW)</blockquote>


I use my credit card to buy Arco gift cards at CVS and get 5% back. That extra $5 a month really makes me feel rich.</blockquote>


OK, that is too funny.
 
[quote author="Astute Observer" date=1258531477]Family members == child labor violation, senior abuse, etc..



<strong>If you don't want to support the cash-only business</strong>, go somewhere else. Apparently, part of the money goes to the patrons who got a nice discount whenever they go.



What is the deal with some gas station that charge me more if I use a credit card? It is so unfair!



(I pay cash, to take advantage of the cheaper gas, BTW)</blockquote>


Yes, I might actually do that after the rude lady pointed to the ATM machine and screamed "CASH ONLY" at me.
 
[quote author="tmare" date=1258550646][quote author="Astute Observer" date=1258531477]Family members == child labor violation, senior abuse, etc..



<strong>If you don't want to support the cash-only business</strong>, go somewhere else. Apparently, part of the money goes to the patrons who got a nice discount whenever they go.



What is the deal with some gas station that charge me more if I use a credit card? It is so unfair!



(I pay cash, to take advantage of the cheaper gas, BTW)</blockquote>


Yes, I might actually do that after the rude lady pointed to the ATM machine and screamed "CASH ONLY" at me.</blockquote>


Just causal mention your work as an IRS auditor. Maybe then every response will be "it's on the house". :)
 
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