(St. Paul, MN) – A Mankato restaurant and two of its managers have been charged with multiple tax crimes.
Fang Chen and Jian Chen, both of Mankato, were charged by the Ramsey County Attorney with two counts of knowingly aiding in the preparation of tax returns that were fraudulent or false.
Shogun Mankato, Inc. was also charged with 33 counts of filing false tax returns.
According to the criminal complaints, the Chens managed Shogun Mankato, with Fang Chen being part-owner of the restaurant. Fang and Jian Chen are accused of canceling thousands of cash transactions from March 2016 through June 2016 in order to underreport taxable sales. Investigators found nearly 50,000 lines of transactions that had been deleted in the Shogun Point of Sale system.
The Chen’s alleged actions deprived the state of more than $200,000 in tax revenue.
Each tax-related charge is a felony and carries a maximum penalty of five years in prison, a $10,000 fine, or both.
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