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The owner and operator of a Southern California retail chain was sentenced to two years in prison for sales tax evasion, false income tax returns, failure to pay taxes and workers compensation fraud, California Attorney General Xavier Becerra announced Wednesday.
Between 2010 and 2016, Jeong Kim, owner and operator of more than 50 Los Angeles-based Fashion Q and Q stores in Los Angeles, Orange, San Diego, San Bernardino and Ventura counties, failed to report more than $29 million in taxable sales, more than $39 million in taxable income, more than $8 million in wages, and evaded payment of $5.6 million in sales, income and payroll tax. The owner also failed to report more than $7 million in wages to his insurance carriers and evaded payment of $353,792 in workers compensation insurance, according to a press release.
“Failing to pay payroll taxes, sales taxes and workers compensation insurance hurts employees, our local communities and businesses that are playing by the rules,” said Attorney General Becerra in a press statement. “The California Department of Justice will continue to hold criminals accountable and protect the pockets of Californians who pay their fair share.”
It didn’t take Sherlock Holmes to crack the case — just a crack claims staff at the Ohio Bureau of Workers Compensation.