SACRAMENTO, CA – David Leung, a former restaurant owner in the Bay Area, pled guilty today to eight felony counts, including six counts of wage theft, tax evasion, and filing a false tax return. Leung, who owned Kome Japanese Seafood Buffet Inc. in Daly City, Tomi Japanese Seafood and Grill Inc. in San Jose, and Tomi Japanese Seafood Buffet in Concord, will face sentencing on April 23, 2024.
The California Attorney General Rob Bonta, in collaboration with the California Department of Tax and Fee Administration (CDTFA), Employment Development Department (EDD), and the Department of Industrial Relations (DIR), announced the guilty plea. The case was prosecuted by the Tax Recovery in the Underground Economy (TRUE) Task Force, a joint effort of the California Department of Justice, CDTFA, EDD, and DIR.
Attorney General Bonta emphasized the serious impact of tax evasion and wage theft on Californians and the state’s ability to deliver essential services. He warned that those engaging in fraud or theft will be held accountable by his office.
Nick Maduros, Director of the California Department of Tax and Fee Administration, echoed these sentiments, highlighting the far-reaching implications of tax evasion on vital state services and programs.
Labor Commissioner Lilia García-Brower highlighted the successful recovery of $2.6 million in compensation in 2020 for the primarily Chinese-speaking workers who were victims of Leung’s wage theft. She stressed the significant impacts of wage theft on families, communities, and the economy.
The investigation revealed that Leung had stolen more than $893,000 in wages from employees and evaded $287,697 in sales tax to CDTFA and $171,820.55 in employment taxes to EDD. This case underscores the ongoing efforts of state agencies to combat wage theft and tax evasion in California.