Description: Seattle, Washington criminal defense lawyer represented the Defendant charged with tax evasion for failing to pay more than $1.7 million in income taxed on income from between 2016 and 2020, Kim underreported the income at his restaurants by more than $1.7 million. He did this by keeping cash proceeds and periodically depositing the cash to his personal bank account or keeping the cash at his home. He paid his employees in cash and failed to pay over various employment taxes. He also overestimated the costs associated with the two restaurants.

When law enforcement executed a search warrant at Kim’s Mukilteo home and at his businesses in June 2022, they discovered he kept handwritten books in which he documented the actual gross income and legitimate expenses for his restaurants and noted a separate figure—a “CPA number”—that provided to his accountant for tax purposes. The CPA number omitted the cash receipts for his restaurants and understated credit card charges as well. The search also revealed an extensive collection of designer goods, large amounts of cash, and records that indicated employees were paid under the table. Kim also used the proceeds from his scheme to invest in properties in Georgia and to pay off his home mortgage.

An analysis by the Internal Revenue Service Criminal Investigation revealed that in each calendar year from 2016 to 2020 Kim failed to report his actual income for each restaurant. In 2017 he failed to report more than $586,395 in income.

Kim has paid restitution of $511,750.

In asking for a one-year prison sentence, Assistant United States Attorney Lauren Watts Staniar noted that the public needs to see that there is punishment for illegally evading taxes. Kim’s “tax fraud was meticulous and deliberate: he kept thorough handwritten books for his restaurants in which he calculated income and expenses. At the end of each month, he wrote down a ‘CPA Number’ that omitted his restaurants’ cash receipts and understated credit card receipts by several thousands of dollars…. He ha(d) cash stashed throughout his home, drives luxury cars, and proudly displays Rolex watches in a locked case. This is not a circumstance in which a struggling business owner underreported income to keep the lights on. Kim had the means to pay his taxes, he just chose not to.”

In court today Kim’s lawyer said he had already sold the sushi restaurant in Everett.

The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.two sushi restaurants: Oshima and Si Joy.

Tax Evasion - 26:7201
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Outcome: Defendant is committed to the custody of the Bureau of Prisons for a term of 10 months. Upon release from custody, defendant is subject to 2 years of supervised release with the standard and special conditions as set forth in the judgment. $100.00 special assessment imposed; $10,000.00 fine; restitution in the amount of $511,750.00.

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