Two residents of Kent, part of popular restaurant chain Bai Tong, pleaded guilty to cheating on the government in Seattle's US District Court Wednesday by hiding more than $ 1 million in income.
Pornchai Chaiseeha, 41, and Chadillada Lapangkura, 40, have used a multi-year program to conceal cash sales and reduce the tax burden on the restaurant chain, according to a press release from the US Department of Justice.
Chaiseeha and Lapangkura, according to the file, belonged to the chain, which has Thai restaurants in Washington, Oregon and Hawaii. Some of the restaurants were named Bai Tong, others were called Noi. The restaurants used a computer system at the point of sale that included a "cash suppression" or "zapper" software program that changed the sales records by removing cash sales from business records.
They had the Zapper software in their restaurants in Redmond and Tukwila and in their restaurant in Bend, Oregon. Restaurants earned $ 1,034,750 in cash receipts never reported in state or federal tax returns, resulting in an agreed tax loss of $ 299,806.
The couple also used unreported cash to pay employees under the table and avoid state and federal labor taxes. Finally, part of the cash proceeds were transferred to bank accounts in Thailand, and the existence of the accounts was not reported in income tax returns.
The defendants have agreed to pay US $ 299,806 to federal and state agencies as part of criminal proceedings. The IRS may also impose other taxes, penalties and interest under its civil procedure.
The two are due to be sentenced on November 4 by US District Judge James L. Robart.
The Procuratorate agreed to impose no more than two years 'imprisonment on Lapangkura and no more than 18 months' imprisonment on Chaiseeha. The judge is not bound by the recommendation. The verdict is determined by the judge on the basis of the guidelines for advisory judgments and other legal factors.
The Internal Revenue Service Criminal Investigation and Homeland Security Investigations have handled the case.