A judge sentenced a San Francisco restaurant owner on Wednesday in connection with a five-year scheme that involved as much as $7.5 million in sales and $2.9 million in wages, all of which went unreported to state authorities, prosecutors said.
Chaturonk Ngamary Jr. is the owner of several Thai Original BBQ restaurants, located in both San Francisco and Los Angeles.
Prosecutors allege Ngamary Jr., his father Chaturonk Ngamary Sr., and the owner of a separate Thai Original BBQ restaurant Sanjutha Hantanachaikul, all collectively schemed between 2011 to 2016 to evade paying sales tax to the California Department of Tax and Fee Administration. In addition, the trio evaded paying payroll tax and workers' compensation insurance premiums the state's Employment Development Department.
Back in Dec. 2019, prosecutors charged Chaturonk Ngamary Jr. with 57 counts, including grand theft. Chaturonk Ngamary Jr. has pleaded guilty to sales tax evasion, possession sales suppression software, and failure to pay payroll taxes, as well as a white collar crime enhancement.
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On Wednesday, a Los Angeles County Superior Court judge sentenced Chaturonk Ngamary Jr. to two years in prison. His sentence, however, will be suspended if he successfully completes two years of probation.
Chaturonk Ngamary Jr. has already paid more than $1.5 million in restitution, prosecutors said.
In addition, prosecutors also charged Chaturonk Ngamary Sr. with 51 counts. Chaturonk Ngamary Sr., however, has fled the country and is believed to be in Thailand, prosecutors said.
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The third suspect, Hantanachaikul, faced nine counts for her participation. Last year, she pleaded guilty to filing a false tax return and has been sentenced to three years probation, according to prosecutors.
California Attorney General Rob Bonta's office initially filed the complaint that led to the charges.
"When a business fails to pay taxes and workers' compensation premiums, they harm their employees and impact the state's ability to fund public services for our communities," Bonta said in a statement. "As the owner of multiple restaurants in California, the defendant failed to meet his obligation to the people of California and his employees. Thank you to all our partners for collaborating to investigate and hold the defendants in this case accountable for their actions."
