The investigation into an alleged $160,000 tax fraud scheme at Shogun Sushi & Hibachi in Mankato has taken another turn, with agents recently raiding the home and bank of the restaurant’s ownership.
Search warrants obtained by SMN show that authorities went to the home of Shogun ownership earlier this month and seized bank documents, business financial records, computers, cell phones, more than $18,000 in cash and several safe deposit keys.
Law enforcement then went to the Wells Fargo on Bassett Drive in Mankato and accessed a safe deposit box. Items collected included a purchase agreement for Shogun Mankato and a piece of “yellow note paper with Chinese writing.” Agents also took photographs of various immigration related documents.
This month’s searches come after a warrant was served this summer at the restaurant itself at 1901 Madison Avenue. Authorities then collected multiple boxes of invoices, receipts and mailings, along with electronics including an iPhone, a laptop and all of the POS (point of sale) computer systems.
Investigators with the Minnesota Department of Revenue say evidence indicates that Shogun is removing transactions from its records, so it appears its sales are lower and thus the restaurant doesn’t have to pay as much in taxes.
The detectives claim that Shogun ownership, or employees under the owners’ direction, may have deleted nearly 50,000 cash sales from its system between January 2014 and July 2016 alone. Based on the average ticket, that indicates sales of $2.2-million dollars not being reported and a sales tax loss to the state of more than $162,000.
Read more about this at southernminnesotanews.com