Married Couple Accused Of Resturant Tax Fraud In Hennepin County

HENNEPIN COUNTY, MN — A wife and husband are accused of committing tax fraud while secretly owning two restaurants in Hennepin County. They had a third person help them with the scheme, prosecutors said.

Sufeng Zheng, of Plymouth, and her husband Ting Gui Zheng, of Maple Grove, face 26 felony counts each of aiding or assisting in the filing of false or fraudulent sales tax returns, and one felony count each of theft by swindle.

Their associate, Ming Zhu, of Blaine, is charged with eight felony counts of aiding or assisting in the filing of false or fraudulent sales tax returns, and one felony count of theft by swindle.

The Zhengs and Zhu schemed to underpay more than $810,000 in sales tax at the two restaurants, prosecutors said.

Each tax-related felony charge carries a maximum penalty of five years in prison and a $10,000 fine. Each felony theft by swindle charge carries a maximum penalty of 20 years in prison and a $100,000 fine.

According to the criminal complaint, the Zhengs were de facto or "ghost owners" of Teppanyaki Grill & Supreme Buffet, which has locations in Minneapolis and Fridley.

Officially, the owners of the restaurants were various business entities at different times, including Z & Chen’s Inc., T & K Inc., L & Z MN Inc., and W & S Inc., authorities said. All four entities face charges of tax crimes as well.

Between May 2016 and October 2018, the Zhengs and Zhu used computer software to suppress sales transactions so they could underreport sales tax on the restaurants’ tax returns, according to the criminal complaint.

During the execution of a search warrant of the Zhengs home, investigators found evidence of the Zhengs' ghost ownership of the two restaurants, authorities said. They also found double sets of sales reports and instructions for the use of sales suppression software, the complaint states.