AUBURN HILLS (WWJ) – The owners of a Japanese restaurant in Auburn Hills are facing multiple felonies for filing false tax returns and failing to file tax returns, Attorney General Dana Nessel announced Monday.
The diner, Joo’s Inc., which did business as Makimoto and Makimoto Sushi Bar, is now under new ownership.
The owners – Seok Hwan Chu and Hwajeong Joo – were arraigned in Ingham County’s 54-A District Court on Monday on the following charges:
Joo’s Inc. dba Makimoto (Joo’s)
• three counts of making/permitting a false sales tax return;
• two counts of failure to file a sales tax return; and
• two counts of failure to file a corporate income tax return.
Seok Hwan Chu
• three counts of making/permitting a false sales tax return;
• two counts of failure to file a sales tax return;
• two counts of failure to file a corporate income tax return; and
• three counts of failure to file an income tax return.
Hwajeong Joo
• two counts of failure to file an income tax return.
Each charge is a five-year felony, if convicted.
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Officials say the Michigan Department of Treasury attempted to audit Joo’s Inc. back in 2017, but it went ignored by the owners.
A subsequent investigation showed that Joo’s allegedly filed false tax returns by underreporting its gross sales in 2015, 2016, and 2017, according to the Attorney General’s office.
The owners are accused of not filing sales tax or corporate income tax returns in 2018 or 2019.
Chu also apparently failed to file personal income tax returns in 2015, 2018, and 2019, and Joo failed to file personal income tax returns in 2017 and 2018, according to the AG’s office.
Joo’s alleged unreported and underreported sales for 2015-2019 amount to just under $2,000,000.
"I appreciate the work done by our partners at the Department of Treasury that resulted in these charges,” Nessel said. “We remain committed to ensuring our tax laws are being properly followed.”
A probable cause conference is set for May 27 and a preliminary examination is scheduled for June 3 before Ingham County Judge Anthony Flores.
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