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Sushi Restaurant "Maki Maki" Closes at The River Following Fraud Allegations

Reported by: KPSP Local 2 News
Email: news@kpsplocal2.com
Last Update: 11/17/2009 1:08 pm
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An Orange County couple who allegedly underreported restaurant sales receipts and employee wages to state authorities pleaded not guilty Monday to tax evasion and other felonies, about a month after authorities say they closed their Rancho Mirage restaurant without notifying or paying their employees.

Simon Sungheok Hong and his wife, Katie Kyanghee Shinn, both 42, face 14 counts of accounting fraud, filing false documents and misrepresenting tax liabilities in connection with operations at Maki-Maki California Japanese Cuisine restaurants.

One eatery was located at The River shopping center in Rancho Mirage and another at the Irvine Spectrum.

The defendants, who until recently resided in 'Coto De Caza' in Orange County, appeared today before Riverside County Superior Court Judge Richard Fields, who set a felony settlement conference in the case for Dec. 17.   

According to the district attorney's office, the pair intentionally under-reported payroll to their workers' compensation insurance carrier and the California Employment Development Department to avoid paying higher workers' comp premiums.

People eat sushi at Maki Maki restaurant.
People eat sushi at Maki Maki restaurant.
They also allegedly failed to report hundreds of thousands of dollars in sales, prosecutors said.

With penalties and interest included, losses to the insurance firm and government agencies is estimated to be $5.8 million.

According to the D.A.'s office, the defendants closed both restaurants last month without giving employees or landlords any advance notice or pay.

The couple also vacated their Orange County residence, said district attorney's office spokesman John Hall.

Hall said after surrendering today, the couple were freed on $75,000 bail.







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