Sophia Wu, 40, of Pittsburgh, Pa., and her restaurant Sun Penang, Inc., located at 5829 Forbes Avenue, pleaded guilty Tuesday to orchestrating a scheme to defraud employees of back wages owed under federal law. Wu admitted to falsifying, concealing, and covering up material facts in connection with wage payments, while the business pleaded guilty to willful violations of the Fair Labor Standards Act.
The charges stem from a fraudulent payroll cover-up after Sun Penang agreed to repay workers for unpaid wages accrued between January 1, 2013, and December 31, 2013. Despite issuing checks to employees, Wu required them to either deposit the funds directly into her personal bank account or continue working without pay until the company recouped the money. These actions directly violated minimum wage and overtime protections guaranteed under federal law.
Wu, also known as Hsiao Yen Wu, submitted faxed copies of the checks to the Department of Labor to falsely prove compliance. Investigators later uncovered that no employee actually received the back wages. The deception was part of a broader pattern of wage suppression and financial manipulation at the Squirrel Hill eatery.
The case was prosecuted by Assistant United States Attorney Shardul S. Desai, under the authority of Acting United States Attorney Soo C. Song. The Department of Labor’s Office of Inspector General led the investigation, uncovering the paper trail Wu used to mask the theft.
Senior United States District Judge Donetta W. Ambrose accepted the guilty pleas on three counts and scheduled sentencing for April 25, 2017, at 10 a.m. Wu faces a maximum of five years in prison, a $250,000 fine, or both. Sun Penang, Inc. faces a statutory maximum fine of $20,000.
Under the Federal Sentencing Guidelines, the final penalties will reflect the severity of the crimes and any prior criminal history. The case highlights ongoing federal scrutiny of labor exploitation in small businesses, where workers—often vulnerable—are silenced by fear and financial dependence.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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