“This case is an example of the investigative work that can be accomplished by state investigators combining their resources as they pertain to their specific departments. Wage theft harms working families struggling to make ends meet and tax evasion hurts California in its efforts to provide services.”
CSLEA President Alan Barcelona
SACRAMENTO – On November 8, 2023, California Attorney General Rob Bonta announced that David Leung, a former Bay Area restaurant owner, pled guilty to eight felony counts for cheating his employees and defrauding the State of California through tax evasion.
Leung owned Kome Japanese Seafood Buffet Inc. in Daly City, Tomi Japanese Seafood and Grill Inc. in San Jose, and Tomi Japanese Seafood Buffet in Concord. Leung pleaded guilty to eight felonies including six counts of wage theft, tax evasion, and filing a false tax return. Sentencing will occur on April 23, 2024.
“Tax evasion and wage theft harm hardworking Californians trying to make ends meet and seriously impact our state’s ability to provide critical services for Californians,” said Attorney General Bonta. “David Leung purposefully evaded his obligations as a taxpayer and exploited his employees for his own gain. I want to thank the California Department of Tax and Fee Administration, the Employment Development Department, and the Department of Industrial Relations whose critical efforts were key to stopping his unlawful behavior. Today’s announcement should serve as a reminder: If you break the law and engage in fraud or theft, my office will hold you accountable.”
The guilty plea was the result of an investigation by DOJ, CDTFA, EDD, and DIR. DOJ, CDTFA, and EDD are a part of the TRUE Task Force. TRUE began investigating suspected wage theft, sales and employment tax evasion, and suppression of sales by Leung in 2017. Leung was charged with stealing more than $893,000 in wages from employees and evaded $287,697 in sales tax to CDTFA and $171,820.55 in employment taxes to EDD.
The TRUE Task Force was created to ensure multiagency collaboration and to combat wage theft, tax evasion, and other crimes in the underground economy. The task force consists of attorneys, investigators, and special agents from the member agencies.
The case will proceed against two other defendants. It is important to note that every defendant is presumed innocent until proven guilty.
