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Quanwei Shi, Co-Owner of Clarksville Restaurant, Charged with Alien Harboring, Tax Fraud
Nashville, TN – A federal indictment has unsealed charges against Quanwei Shi, co-owner of the New China Buffett and Grill (NCBG) in Clarksville, Tennessee, with conspiracy and tax fraud charges relating to the employment of undocumented workers from China and Guatemala.
According to the indictment, between 2017 and April 2019, Shi and Chongqiang Chen, also 29, of Clarksville, conspired to conceal and harbor illegal aliens from China and Guatemala, profiting from their employment at NCBG. The undocumented workers were not required to complete any forms related to immigration status and were paid in cash, outside the regular payroll system.
The indictment further alleges that Shi evaded payroll taxes by failing to withhold $175,455.00 from the undocumented workers’ payments. These income and FICA taxes were not paid over to the IRS as required, but instead were used for commercial advantage and private financial gain.
Shi and Chen were charged with conspiracy to harbor illegal aliens; harboring illegal aliens; money laundering; income tax fraud; and employment tax fraud. Shi was arrested at his home in Clarksville on March 17, while Chen surrendered to U.S. Marshals earlier today in the Eastern District of New York.
The indictment also contains a forfeiture allegation against real property located at 403 D Street in Clarksville and vehicles and bank accounts used in furtherance of the conspiracy.
If convicted, the defendants face up to 20 years in prison and a $500,000 fine. The case was investigated by multiple law enforcement agencies, including the U.S. Department of Homeland Security Investigations; the IRS-Criminal Investigation; the Diplomatic Security Service of the U.S. Department of State; and the Tennessee Bureau of Investigation.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
Key Facts
- State: Tennessee
- Category: Fraud & Financial Crimes|Human Trafficking
- Source: DOJ Press Release â†â€â€
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