Sam Woo restaurant owner pleads guilty to multimillion-dollar tax and insurance fraud scheme

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Sam Woo restaurant owner pleads guilty to multimillion-dollar tax and insurance fraud scheme
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LA's Sam Woo restaurant owner Gary Cheung pleads guilty to multi-million dollar tax and insurance fraud scheme, will get years in prison (Via EaterLA)

and pleaded guilty to multiple felonies including filing a false sales tax return, failure to pay payroll taxes, and filing a false income tax return.

Cheung will serve no less than three years in prison — and that’s if he pays $2,964,375.93 in restitution — or nine years and four months in prison if he fails to pay the full amount. Cheung will be formally sentenced in August 2021.

Cheung also evaded payment of $2,414,769.93 in sales tax, income tax, and payroll tax, and $549,606 in workers’ compensation insurance premiums. The investigation into Cheung’s scheme was completed by members of the Tax Recovery in the Underground Economy task force. The original Sam Woo Restaurant, which opened in LA’s Chinatown over 40 years ago, has since expanded across the county with additional locations in Rosemead, Cerritos, and Van Nuys. The chain is best known for its Hong Kong-style barbecued ducks and pigs, and for its dependably fast service.Sign up for our newsletter.

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