Restaurant Owner Sent to Prison for Dodging Taxes in Multi-Million Dollar Scam

United States PenitentiaryImage by Gerd Altmann

PHILADELPHIA, PA — Yong Chun (“Steven”) Guo, a 57-year-old restaurateur from Wyomissing, Berks County, Pennsylvania, has been handed a 30-month sentence in federal prison this Tuesday. United States District Court Judge Joseph F. Leeson, Jr. didn’t stop at prison time; he also ordered Guo to pay back a staggering $1,172,368 and slapped him with a hefty $95,000 fine.

Guo’s journey to the courtroom began when he admitted to conspiring to cheat the United States out of taxes, a revelation that came to light following an investigation into his family’s restaurant. The establishment, which Guo ran, was found to have a dual payroll system that kept a chunk of employee wages off the books. By paying workers partly in cash and failing to report these cash payments to his accountant, Guo effectively shielded over $3.9 million from Uncle Sam’s gaze between 2013 and 2020. This maneuver deprived the government of approximately $444,899 in payroll taxes.

But Guo’s financial sleight of hand didn’t end there. He also pleaded guilty to attempted tax evasion for not reporting cash he pocketed directly from the restaurant’s daily takings on his personal tax returns. Between 2013 and 2018, more than $2 million in income mysteriously failed to appear on his tax documents, leading to a further tax loss of around $727,469.

U.S. Attorney Jacqueline C. Romero didn’t mince words as she condemned Guo’s actions, highlighting the betrayal felt by law-abiding taxpayers who fulfill their obligations each year. She underscored the commitment of her office to pursue and prosecute those who try to skirt around their fiscal responsibilities.

READ:  IRS-CI Releases FY24 Annual Report Highlighting Landmark Investigations and Global Impact

Yury Kruty, IRS Criminal Investigation Special Agent in Charge, echoed Romero’s sentiments, warning would-be tax dodgers of the relentless efforts of IRS special agents. Their message is clear: cheating on taxes is a game not worth playing.

This case, pursued by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant United States Attorney Karen L. Grigsby, serves as a stark warning to others tempted to follow in Guo’s footsteps. With the government taking a hard stance on tax evasion, it’s evident that those attempting to hide their earnings will face severe repercussions.

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.