CHICAGO — Hu Xiaojun, also known as 'Tony Hu,' was sentenced to a year and a day in federal prison for withholding taxes by underreporting receipts paid in cash.
Hu, the owner of several Chinese restaurants in the Chicago area, including eateries operating under the Lao Sze Chuan brand, intentionally withheld sales taxes from the Illinois state government and the city of Chicago for receipts that customers paid in cash.
From January 2010 to September 2014, Hu deposited the unreported cash into his personal bank account and used the money to pay personal expenses.
All told, Hu hid more than $1 million in taxes from state and local government from more than $9.8 million in cash sales.
Hu, 49, of Chicago, pleaded guilty in May to one count of wire fraud and one count of money laundering.
U.S. District Judge Amy J. St. Eve also fined Hu $100,000.
'Business leaders like the defendant owe a special obligation to abide by our tax laws and pay their fair share,' Assistant U.S. Attorney William Ridgway argued in the government's sentencing memorandum.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
The government is represented by Mr. Ridgway.
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Key Facts
- State: Illinois
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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