The owner of a popular Thai restaurant in Tukwila, Washington, has been sentenced to 18 months in prison for tax fraud totaling nearly $1 million. Keovilayvanh Rinthalukay, 62, pleaded guilty in February 2023 to willful failure to pay over taxes, announced U.S. Attorney Nick Brown.
According to the U.S. Attorney’s Office, Rinthalukay withheld Medicare, Social Security, and federal income taxes from his employees’ paychecks between 2015 and 2019, but instead of paying the taxes to the government, he pocketed the money for his own benefit.
The amount withheld is not a small number – it’s a lot of money. And the defendant didn’t find it necessary to pay his taxes for a number of years – it shows no respect for the law, said U.S. District Judge James L. Robart at the sentencing hearing.
The failure to turn over payroll taxes is simply theft from employees who trust their employer to make those payments for their future well-being, said U.S. Attorney Nick Brown. In this case, Mr. Rinthalukay has committed to aggressively pay back more than $926,000 in tax debt. The prison sentence brings home the need to do right by workers and their future Social Security, Medicare, and federal unemployment benefits.
Rinthalukay failed to pay at least $926,092 in taxes, which he used for his personal expenses, including buying property, paying private school tuition for his children, and buying a motorcycle. Judge Robart noted at today’s hearing that Rinthalukay currently owns two homes in Western Washington that together are valued at well over $2 million.
As relevant conduct, the government noted that Rinthalukay has not paid his personal federal income taxes since 1998. The IRS is still reviewing that matter.
Rinthalukay has paid $550,000 of the taxes owed. The judgment imposed by Judge Robart will require prompt repayment of the remainder, including having Rinthalukay liquidate assets if needed.
Defendant/respondent: Keovilayvanh Rinthalukay
Criminal charges: Willful failure to pay over taxes
City and state: Seattle, Washington
Exact date: February 2023 (plea), 05/04/2023 (sentencing)
Sentence or outcome: 18 months in prison
Dollar amounts: $926,092 (tax debt), $2 million (value of Rinthalukay’s homes)
Related Federal Cases
- Morales Cacique, Money Laundering, Florida 2016 · Washington
- Travis Hill, Securities Fraud, Washington 2023 · Washington
- Lamar Cox, Bank Fraud, Washington 2007 · Arkansas
- Nguyen Tax Fraud Scheme, San Jose CA, 2023 · Connecticut
- Seeneey Ristick Sentenced to 46 Months for Tax Refund Fraud, Tacoma… · Alaska
Key Facts
- State: Washington
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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