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CASE NUMBER: 49G02-1805-F5-014314

STATE OF INDIANA MARION COUNTY, ss:

FILED: 5/2/2018

IN THE MARION SUPERIOR COURT CRIMINAL DIVISION Cause No: 49

STATE OF INDIANA vs.

Chunhua Wang A/Male DOB 3/5/1978 Co-Defendant with: Guang Feng Li Shuai Li Ji Rong Lin Guo Wu Wu Jin Qui Zhao Sheng Yi Li

) ) ) )

INFORMATION COUNT I CORRUPT BUSINESS INFLUENCE I.C. 35-45-6-2(2) A LEVEL 5 FELONY COUNT II THEFT I.C. 35-43-4-2(a) and I.C. 35-43-4-2(a)(2) (A) A LEVEL 5 FELONY COUNT III THEFT I.C. 35-43-4-2(a) and I.C. 35-43-4-2(a)(1) (A) A LEVEL 6 FELONY COUNT IV FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A LEVEL 6 FELONY COUNT V FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A LEVEL 6 FELONY

On this date, the undersigned came before the Prosecuting Attorney of the Nineteenth Judicial Circuit and, being duly sworn (or having affirmed), stated that in Marion County, Indiana COUNT I Between July 1, 2014 and December 31, 2016, Guang Feng Li, Shuai Li, Ji Rong Lin, Guo Wu, Jin Zhao, Chunhua Wang and Sheng li through a pattern of racketeering activity, to-wit: theft; did knowingly acquire and/or maintain an interest in or control of property, to-wit: United States currency, and said pattern of racketeering activity included the crime of theft in which the defendants did the following: Act 1 Between April 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United State currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 2 Between January 1, 2016 and July 31, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 3 Between October 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 4 Between January 1, 2016 and June 30, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 5 Between November 1, 2013 and December 31, 2013, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property; Act 6

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

Between January 1, 2014 and June 30, 2014, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property; Act 7 Between September 1, 2015 and December 31, 2015, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 8 Between January 1, 2016 and July 31, 2016, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 9 Between February 11, 2015 and December 31, 2015, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 10 Between January 1, 2016 and July 31, 2016, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars;

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

Act 11 Between October 1, 2015 and December 31, 2015, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 12 Between January 1, 2016 and July 31, 2016, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 13 Between March 29, 2015 and December 31, 2015, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars. Act 14 Between January 1, 2016 and July 31, 2016, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 15 Between September 1, 2014 and December 31, 2014, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property,

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 16 Between January 1, 2015 and December 31, 2015, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars; Act 17 Between January 1, 2016 and July 1, 2016, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit:United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT II Between March 29, 2015 and December 31, 2015, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars. COUNT III Between January 1, 2016 and July 31, 2016, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT IV Between March 29, 2015 and December 31, 2015, Chunhua Wang being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

to the State of Indiana as required; COUNT V Between January 1, 2016 and July 31, 2016, Chunhua Wang being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; all of which is contrary to statute and against the peace and dignity of the State of Indiana. I swear or affirm under penalty of perjury as specified by I.C. 35-44.1-2-1 that the foregoing representations are true.

/s/ Eric Eads _______________________________ Affiant

State's Witnesses: ERIC JAMES EADS TODD MICHAEL WELLMANN Indiana Department of Revenue and/or The State of Indiana Carole Bryant-Buchholz Rick Albrecht May 2, 2018 Date TERRY R. CURRY Marion County Prosecutor 19th Judicial Circuit /s/ E Timothy Delaney ______________________________ Deputy Prosecuting Attorney

CASE NUMBER: 49G02-1805-F5-014299

STATE OF INDIANA MARION COUNTY, ss:

FILED: 5/2/2018

IN THE MARION SUPERIOR COURT CRIMINAL DIVISION Cause No: 49

STATE OF INDIANA vs.

Guang Feng Li A/Male DOB 10/21/1974 Co-Defendant with: Shuai Li Ji Rong Lin Guo Wu Wu Jin Qui Zhao Chunhua Wang Sheng Yi Li

) ) ) )

INFORMATION COUNT I CORRUPT BUSINESS INFLUENCE I.C. 35-45-6-2(2) A LEVEL 5 FELONY COUNT II THEFT I.C. 35-43-4-2(a) and I.C. 35-43-4-2(a)(1) (A) A LEVEL 6 FELONY COUNT III THEFT I.C. 35-43-4-2(a) and I.C. 35-43-4-2(a)(1) (A) A LEVEL 6 FELONY COUNT IV THEFT I.C. 35-43-4-2(a) and I.C. 35-43-4-2(a)(1) (A) A LEVEL 6 FELONY COUNT V THEFT I.C. 35-43-4-2(a) and I.C. 35-43-4-2(a)(1) (A) A LEVEL 6 FELONY COUNT VI FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A LEVEL 6 FELONY COUNT VII FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A LEVEL 6 FELONY COUNT VIII FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A LEVEL 6 FELONY COUNT IX FAILURE TO REMIT TAXES HELD IN

CASE NUMBER: 49G02-1805-F5-014299

FILED: 5/2/2018

FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A LEVEL 6 FELONY On this date, the undersigned came before the Prosecuting Attorney of the Nineteenth Judicial Circuit and, being duly sworn (or having affirmed), stated that in Marion County, Indiana COUNT I Between July 1, 2014 and December 31, 2016, Guang Feng Li, Shuai Li, Ji Rong Lin, Guo Wu, Jin Zhao, Chunhua Wang and Sheng li through a pattern of racketeering activity, to-wit: theft; did knowingly acquire and/or maintain an interest in or control of property, to-wit: United States currency, and said pattern of racketeering activity included the crime of theft in which the defendants did the following: Act 1 Between April 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United State currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 2 Between January 1, 2016 and July 31, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 3 Between October 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars;

CASE NUMBER: 49G02-1805-F5-014299

FILED: 5/2/2018

Act 4 Between January 1, 2016 and June 30, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 5 Between November 1, 2013 and December 31, 2013, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property; Act 6 Between January 1, 2014 and June 30, 2014, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property; Act 7 Between September 1, 2015 and December 31, 2015, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 8 Between January 1, 2016 and July 31, 2016, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars;

CASE NUMBER: 49G02-1805-F5-014299

FILED: 5/2/2018

Act 9 Between February 11, 2015 and December 31, 2015, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 10 Between January 1, 2016 and July 31, 2016, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 11 Between October 1, 2015 and December 31, 2015, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 12 Between January 1, 2016 and July 31, 2016, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 13 Between March 29, 2015 and December 31, 2015, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person

CASE NUMBER: 49G02-1805-F5-014299

FILED: 5/2/2018

of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars. Act 14 Between January 1, 2016 and July 31, 2016, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 15 Between September 1, 2014 and December 31, 2014, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 16 Between January 1, 2015 and December 31, 2015, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars; Act 17 Between January 1, 2016 and July 1, 2016, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit:United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars;

COUNT II Between April 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State

CASE NUMBER: 49G02-1805-F5-014299

FILED: 5/2/2018

Of Indiana, to-wit: United State currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT III Between January 1, 2016 and July 31, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT IV Between October 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT V Between January 1, 2016 and June 30, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT VI Between April 1, 2015 and December 31, 2015, Guang Feng Li being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required;

CASE NUMBER: 49G02-1805-F5-014299

FILED: 5/2/2018

COUNT VII Between January 1, 2016 and July 31, 2016, Guang Feng Li being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; COUNT VIII Between January 1, 2015 and December 31, 2015, Guang Feng Li being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; COUNT IX Between January 1, 2016 and June 30, 2016, Guang Feng Li being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; all of which is contrary to statute and against the peace and dignity of the State of Indiana. I swear or affirm under penalty of perjury as specified by I.C. 35-44.1-2-1 that the foregoing representations are true.

/s/ Eric Eads _______________________________ Affiant

CASE NUMBER: 49G02-1805-F5-014299

FILED: 5/2/2018

/s/ E Timothy Delaney ______________________________ Deputy Prosecuting Attorney

CASE NUMBER: 49G02-1805-F5-014308

STATE OF INDIANA MARION COUNTY, ss:

FILED: 5/2/2018

IN THE MARION SUPERIOR COURT CRIMINAL DIVISION Cause No: 49

STATE OF INDIANA vs.

Ji Rong Lin A/Male DOB 11/3/1989 Co-Defendant with: Guang Feng Li Shuai Li Guo Wu Wu Jin Qui Zhao Chunhua Wang Sheng Yi Li

) ) ) )

CASE NUMBER: 49G02-1805-F5-014308

FILED: 5/2/2018

CASE NUMBER: 49G02-1805-F5-014308

FILED: 5/2/2018

CASE NUMBER: 49G02-1805-F5-014308

FILED: 5/2/2018

CASE NUMBER: 49G02-1805-F5-014308

FILED: 5/2/2018

COUNT II Between September 1, 2015 and December 31, 2015, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT III Between January 1, 2016 and July 31, 2016, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT IV Between September 1, 2015 and December 31, 2015, Ji Rong Lin being an individual who had

CASE NUMBER: 49G02-1805-F5-014308

FILED: 5/2/2018

a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; COUNT V Bbetween January 1, 2016 and July 31, 2016, Ji Rong Lin being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; all of which is contrary to statute and against the peace and dignity of the State of Indiana. I swear or affirm under penalty of perjury as specified by I.C. 35-44.1-2-1 that the foregoing representations are true.

/s/ Eric Eads _______________________________ Affiant

CASE NUMBER: 49G02-1805-F5-014309

STATE OF INDIANA MARION COUNTY, ss:

FILED: 5/2/2018

IN THE MARION SUPERIOR COURT CRIMINAL DIVISION Cause No: 49

STATE OF INDIANA vs.

Guo Wu Wu A/Male DOB 1/1/1974 Co-Defendant with: Guang Feng Li Shuai Li Ji Rong Lin Jin Qui Zhao Chunhua Wang Sheng Yi Li

) ) ) )

Act 1

CASE NUMBER: 49G02-1805-F5-014309

FILED: 5/2/2018

Between April 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United State currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 2 Between January 1, 2016 and July 31, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 3 Between October 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 4 Between January 1, 2016 and June 30, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 5 Between November 1, 2013 and December 31, 2013, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property;

CASE NUMBER: 49G02-1805-F5-014309

FILED: 5/2/2018

Act 6 Between January 1, 2014 and June 30, 2014, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property; Act 7 Between September 1, 2015 and December 31, 2015, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 8 Between January 1, 2016 and July 31, 2016, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 9 Between February 11, 2015 and December 31, 2015, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 10 Between January 1, 2016 and July 31, 2016, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a

CASE NUMBER: 49G02-1805-F5-014309

FILED: 5/2/2018

value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 11 Between October 1, 2015 and December 31, 2015, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 12 Between January 1, 2016 and July 31, 2016, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 13 Between March 29, 2015 and December 31, 2015, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars. Act 14 Between January 1, 2016 and July 31, 2016, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 15 Between September 1, 2014 and December 31, 2014, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue

CASE NUMBER: 49G02-1805-F5-014309

FILED: 5/2/2018

COUNT II Between February 11, 2015 and December 31, 2015, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit:United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT III Between January 1, 2016 and July 31, 2016, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit:United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT IV

CASE NUMBER: 49G02-1805-F5-014309

FILED: 5/2/2018

Between February 11, 2015 and December 31, 2015, Guo Wu Wu being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; COUNT V Between January 1, 2016 and July 31, 2016, Guo Wu Wu being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; all of which is contrary to statute and against the peace and dignity of the State of Indiana. I swear or affirm under penalty of perjury as specified by I.C. 35-44.1-2-1 that the foregoing representations are true.

_/s/ Eric Eads____________________ Affiant

State's Witnesses: ERIC JAMES EADS TODD MICHAEL WELLMANN Rick Albrecht Carole Bryant-Bucholz Indiana Department of Revenue and/or The State of Indiana

May 2, 2018 Date TERRY R. CURRY Marion County Prosecutor 19th Judicial Circuit

_/s/ E. Timothy DeLaney_______ Deputy Prosecuting Attorney

CASE NUMBER: 49G02-1805-F5-014317

STATE OF INDIANA MARION COUNTY, ss:

FILED: 5/2/2018

IN THE MARION SUPERIOR COURT CRIMINAL DIVISION Cause No: 49

STATE OF INDIANA vs.

Sheng Yi Li A/Male DOB 10/23/1984 Co-Defendant with: Guang Feng Li Shuai Li Ji Rong Lin Guo Wu Wu Jin Qui Zhao Chunhua Wang

) ) ) )

INFORMATION COUNT I CORRUPT BUSINESS INFLUENCE I.C. 35-45-6-2(2) A LEVEL 5 FELONY COUNT II THEFT I.C. 35-43-4-2(a) and I.C. 35-43-4-2(a)(1) (A) A LEVEL 6 FELONY COUNT III THEFT I.C. 35-43-4-2(a) and I.C. 35-43-4-2(a)(2) (A) A LEVEL 5 FELONY COUNT IV THEFT I.C. 35-43-4-2(a) and I.C. 35-43-4-2(a)(1) (A) A LEVEL 6 FELONY COUNT V FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A LEVEL 6 FELONY COUNT VI FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A LEVEL 6 FELONY COUNT VII FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A LEVEL 6 FELONY

On this date, the undersigned came before the Prosecuting Attorney of the Nineteenth Judicial Circuit and, being duly sworn (or having affirmed), stated that in Marion County, Indiana COUNT I

CASE NUMBER: 49G02-1805-F5-014317

FILED: 5/2/2018

Between July 1, 2014 and December 31, 2016, Guang Feng Li, Shuai Li, Ji Rong Lin, Guo Wu, Jin Zhao, Chunhua Wang and Sheng li through a pattern of racketeering activity, to-wit: theft; did knowingly acquire and/or maintain an interest in or control of property, to-wit: United States currency, and said pattern of racketeering activity included the crime of theft in which the defendants did the following:

Act 1 Between April 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United State currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 2 Between January 1, 2016 and July 31, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 3 Between October 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 4 Between January 1, 2016 and June 30, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of

CASE NUMBER: 49G02-1805-F5-014317

FILED: 5/2/2018

Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 5 Between November 1, 2013 and December 31, 2013, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property; Act 6 Between January 1, 2014 and June 30, 2014, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property;

Act 7 Between September 1, 2015 and December 31, 2015, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 8 Between January 1, 2016 and July 31, 2016, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 9 Between February 11, 2015 and December 31, 2015, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue

CASE NUMBER: 49G02-1805-F5-014317

FILED: 5/2/2018

And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 10 Between January 1, 2016 and July 31, 2016, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 11 Between October 1, 2015 and December 31, 2015, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 12 Between January 1, 2016 and July 31, 2016, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars;

Act 13 Between March 29, 2015 and December 31, 2015, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars.

CASE NUMBER: 49G02-1805-F5-014317

FILED: 5/2/2018

Act 14 Between January 1, 2016 and July 31, 2016, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars;

Act 15 Between September 1, 2014 and December 31, 2014, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 16 Between January 1, 2015 and December 31, 2015, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars; Act 17 Between January 1, 2016 and July 1, 2016, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit:United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT II Between September 1, 2014 and December 31, 2014, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana

CASE NUMBER: 49G02-1805-F5-014317

FILED: 5/2/2018

Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT III Between January 1, 2015 and December 31, 2015, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars; COUNT IV Between January 1, 2016 and July 1, 2016, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit:United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT V Between January 1, 2016 and July 1, 2016, Sheng Yi Li being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; COUNT VI Between January 1, 2015 and December 31, 2015, Sheng Yi Li being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; COUNT VII Between January 1, 2016 and July 1, 2016, Sheng Yi Li being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; all of which is contrary to statute and against the peace and dignity of the State of Indiana.

CASE NUMBER: 49G02-1805-F5-014317

FILED: 5/2/2018

I swear or affirm under penalty of perjury as specified by I.C. 35-44.1-2-1 that the foregoing representations are true.

/s/ Eric Eads _______________________________ Affiant

CASE NUMBER: 49G02-1805-F5-014315

STATE OF INDIANA MARION COUNTY, ss:

FILED: 5/2/2018

IN THE MARION SUPERIOR COURT CRIMINAL DIVISION Cause No: 49

STATE OF INDIANA vs.

Jin Qui Zhao A/Male DOB 10/29/1968 Co-Defendant with: Guang Feng Li Shuai Li Ji Rong Lin Guo Wu Wu Chunhua Wang Sheng Yi Li

) ) ) )

CASE NUMBER: 49G02-1805-F5-014315

FILED: 5/2/2018

CASE NUMBER: 49G02-1805-F5-014315

FILED: 5/2/2018

CASE NUMBER: 49G02-1805-F5-014315

FILED: 5/2/2018

CASE NUMBER: 49G02-1805-F5-014315

FILED: 5/2/2018

COUNT II Between October 1, 2015 and December 31, 2015, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT III Between January 1, 2016 and July 31, 2016, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; COUNT IV Between October 1, 2015 and December 31, 2015, Jin Qui Zhao being an individual who had

CASE NUMBER: 49G02-1805-F5-014315

FILED: 5/2/2018

a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; COUNT V Between January 1, 2016 and July 31, 2016, Jin Qui Zhao being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; all of which is contrary to statute and against the peace and dignity of the State of Indiana. I swear or affirm under penalty of perjury as specified by I.C. 35-44.1-2-1 that the foregoing representations are true.

/s/ Eric Eads _______________________________ Affiant

State's Witnesses: ERIC JAMES EADS TODD MICHAEL WELLMANN Carole Bryant-Buchholz Rick Albrecht Indiana Department of Revenue and/or The State of Indiana May 2, 2018 Date TERRY R. CURRY Marion County Prosecutor 19th Judicial Circuit /s/ E Timothy Delaney ______________________________ Deputy Prosecuting Attorney

CASE NUMBER: 49G02-1805-F5-014306

STATE OF INDIANA MARION COUNTY, ss:

FILED: 5/2/2018

IN THE MARION SUPERIOR COURT CRIMINAL DIVISION Cause No: 49

STATE OF INDIANA vs.

Shuai Li A/Male DOB 12/3/1988 Co-Defendant with: Guang Feng Li Ji Rong Lin Guo Wu Wu Jin Qui Zhao Chunhua Wang Sheng Yi Li

) ) ) )

INFORMATION COUNT I CORRUPT BUSINESS INFLUENCE I.C. 35-45-6-2(2) A LEVEL 5 FELONY COUNT II THEFT I.C. 35-43-4-2(a) A CLASS D FELONY COUNT III THEFT I.C. 35-43-4-2(a) A CLASS D FELONY COUNT IV FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A CLASS D FELONY COUNT V FAILURE TO REMIT TAXES HELD IN TRUST I.C. 6-2.5-9-3 A CLASS D FELONY

CASE NUMBER: 49G02-1805-F5-014306

FILED: 5/2/2018

Of Indiana, to-wit: United State currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 2 Between January 1, 2016 and July 31, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 3 Between October 1, 2015 and December 31, 2015, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 4 Between January 1, 2016 and June 30, 2016, Guang Feng Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 5 Between November 1, 2013 and December 31, 2013, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property; Act 6 Between January 1, 2014 and June 30, 2014, Shuai Li did knowingly or intentionally exert

CASE NUMBER: 49G02-1805-F5-014306

FILED: 5/2/2018

unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property; Act 7 Between September 1, 2015 and December 31, 2015, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 8 Between January 1, 2016 and July 31, 2016, Ji Rong Lin did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 9 Between February 11, 2015 and December 31, 2015, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 10 Between January 1, 2016 and July 31, 2016, Guo Wu Wu did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 11

CASE NUMBER: 49G02-1805-F5-014306

FILED: 5/2/2018

Between October 1, 2015 and December 31, 2015, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 12 Between January 1, 2016 and July 31, 2016, Jin Qui Zhao did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 13 Between March 29, 2015 and December 31, 2015, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars. Act 14 Between January 1, 2016 and July 31, 2016, Chunhua Wang did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars; Act 15 Between September 1, 2014 and December 31, 2014, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty

CASE NUMBER: 49G02-1805-F5-014306

FILED: 5/2/2018

thousand dollars; Act 16 Between January 1, 2015 and December 31, 2015, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency; with the intent to deprive said person of any part of the use or value of the property, said property having a value in excess of fifty thousand dollars; Act 17 Between January 1, 2016 and July 1, 2016, Sheng Yi Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit:United States currency with the intent to deprive Indiana Department of Revenue and/or The State of Indiana of any part of the use or value of the property, said property having a value of at least seven hundred fifty dollars and less than the value of fifty thousand dollars;

COUNT II Between November 1, 2013 and December 31, 2013, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property; COUNT III Between January 1, 2014 and June 30, 2014, Shuai Li did knowingly or intentionally exert unauthorized control over the property of Indiana Department Of Revenue And/or The State Of Indiana, to-wit: United States currency with the intent to deprive said person of any part of the use or value of the property; COUNT IV Between November 1, 2013 and December 31, 2013, Shuai Li being an individual who had a duty to remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; COUNT V Between January 1, 2014 and June 30, 2014, Shuai Li being an individual who had a duty to

CASE NUMBER: 49G02-1805-F5-014306

FILED: 5/2/2018

remit state gross retail or use taxes, did knowingly fail to collect or remit said taxes to the State of Indiana as required; all of which is contrary to statute and against the peace and dignity of the State of Indiana. I swear or affirm under penalty of perjury as specified by I.C. 35-44.1-2-1 that the foregoing representations are true.

/s/ Eric Eads _______________________________ Affiant

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

AFFIDAVIT FOR PROBABLE CAUSE STATE OF INDIANA, COUNTY OF MARION,

DETECTIVE ERIC EADS

swears (afﬁrms)

SS:

that:

This investigation began on October

2014,

when

a search warrant was executed at a

Teppanyaki restaurant located at 9701 E. Washington Street, Indianapolis, IN. During the course of the search warrant, ofﬁcers located books and ledgers showing the daily sales at the location.

Review of those records by

IDOR investigators

revealed that the E. Washington location was

underreporting cash sales for sales tax and food and beverage tax purposes.

An analysis by investigators was signiﬁcantly underreporting Revenue

for the period reviewed.

revealed that the Teppanyaki restaurant at East Washington

its sales

The

and owed

at least

$1 14,000 t0 the Department 0f

investigation also revealed that the majority of individuals

employed by the East Washington location were housed and transported daily by the owners and were paid in cash without withholding taxes.

location’s

Subsequent investigation focused on the following locations:

Teppanyaki Supreme Buffet, Inc. — 285 E. Coliseum Blvd, Ft. Wayne, IN Teppanyaki Buffet, Inc. 7 1310 W. 38"“ Street, Marion, IN Teppanyaki Grill, Inc. — 3810 S. US Highway 41, Terra Haute, IN

Hokkaido Grill & Buffet, Inc. ~ 2535 E. Main Street, Plainﬁeld, IN Teppanyaki 9701, Inc. — 9701 E. Washington Street, Indianapolis, IN Teppanyaki 38, Inc. — 3950 W‘ 38‘“ Street, Indianapolis, IN Teppanyaki Grill Super Buffet, Inc. ‘ 2641 Maple Point Drive, Lafayette, 1N

The various

all employed nearly identical business practices to those previously location. Each business operates as a buffet with a variety Washington observed at the 9701 E. 0f foods on offer, including Chinese cuisine. Employees are housed in apartments leased by the restaurant owners and transported t0 and from work in vans owned by and driven by restaurant management. Employees are typically undocumented. Furthermore, an analysis 0f Revenue and

Work

locations

Force records showed the same patterns. Few,

employees

at the restaurants.

restaurants far

if any

such employees were listed as

Also, the number 0f actual persons working in any of the given

outnumbered the number of persons documented

in state ﬁlings.

Further investigation into patterns of potential tax avoidance at various Teppanyaki (or similarly run businesses) led t0 investigators executing search warrants statewide

2016. In the course of those search warrants, detectives obtained,

among

on August

other things, business

records evidencing the daily sales from the various locations. Investigators submitted those records to Caxole Bryant-Buchholz an auditor employed

by the Indiana Department of Revenue, and Rick Albrecht, employed by the Marion County Prosecutor’s Ofﬁce (prior agent for over 25

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

years with the Indiana Department of Revenue), for forensic analysis to determine whether tax returns ﬁled with

IDOR are

supported by the daily sales records.

showed that each of the Lafayette, F011 Wayne, Marion, W. 38'“ and E. Washington Street locations are supplied by Union Broker, a food wholesaler. Review 0f business records and invoices shows that Union Broker invoices are In addition, surveillance

Street, Plainﬁeld

some combination of cash and check. This use of cash to pay for invoiced food items, along with cash payments t0 employees, provides the restaurants with ample opponunity to hide and thereby underreport cash sales. typically paid in cash 0r in

The

analysis,

which

restaurants suggesting a

detailed below, found remarkably consistent activities

common scheme

by the

to defraud the State

of Indiana of sale tax revenue. In each case, the restaurant’s internal records reveal that approximately 45% of total sales are cash transactions. The Lafayette, Fort Wayne, Marion, W. 38‘“ Street, Plainﬁeld and E. Washington Street locations all use one 0f two accountants out of New York City.‘ Each of those six

15% 0f total of Indiana each 0f the seven restaurants reports cash

restaurants reports t0 their accountant that cash sales account for approximately

When reporting sales t0 the State sales typically below 5% 0f total sales. sales.

“The essential element of a chain conspiracy --allowing persons unknown to each other and never before in contact to be jointly prosecuted as coconspirators —- is interdependence. The scheme which is the object of the conspiracy must depend 0n the successful operation of each link in the chain” United States

v. Elliott, 571 F.2d 880, 900-901 (S‘h Cir. 1978); Blumenthal v. United States, 332 U.S. 539 (1947).“An individual associating himself with a ‘chain' conspiracy knows that it has a 'scope' and that for its success it requires an organization wider than may be

disclosed by his personal participation". United States 1962), cert. denied, 372

US.

Agueci, 31 0 F.2d 81 7, 827 (2d Cir.

2d 11 (1963). "Thus, in a 'chain' conspiracy prosecution, the requisite element --kn0wledge of the existence of remote links --

may be 51,

959, 83

S. Ct.

1013, 10

Ed.

inferred solely from the nature of the enterprise." United States

common

(S'h Cir.

1973).

The seven

to divert sales tax proceeds

locations detailed in this afﬁdavit

Perez, supra, 489 F.2d employed a scheme in

from the State 0f Indiana by intentionally underreporting

cash sales by over 90%.

Indiana Sales Tax Indiana has a state gross

retail

tax of seven percent (7%)2 that is

transactions. (LC. 6-2.5-2-1(a)) Restaurant sales are subject t0 sales lax.

imposed 0n

all retail

The purchaser

in a retail

transaction is liable for the sales tax and, unless otherwise provided, that purchaser pays the sales tax t0 the seller. (LC. 6-2.5-2-1(b)) The seller then collects the sales tax as an agent for the State

of Indiana.

(I.C. 6-2.5-2-1(b))

The

seller is referred to as a retail

merchant and

making a

retail

when the person engages in selling at retail. (LC. 6~2.5-4-1 (a)) I.C. 6-2.5-4-1(b) “A person is engaged in selling at retail when, in the ordinary course of the person’s

transaction states that

Accountant information for the Terre Haute location is unknown. LC, 6-2.5-2-2(a) The state gross retail tax is measured by the gross

retail

unitary transaction and

imposed

retail

income received by a

seven percent (7%) 0f that gross

retail

income.

retail

merchant

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

regularly conducted trade 0r business, the person: (a) acquires tangible personal

propeny

for the

purpose 0f resale, and (2) transfers that property t0 another person for consideration. I.C. 6-2.5-9-3 criminalizes the failure to remit to sales tax as follows:

individual (1) Is

who: an individual

retail

merchant or

an employee, ofﬁcer, or member ofa

corporate 0r partnership retail merchant; and

Has

(2)

a duty to remit state gross retail or use taxes (as described in LC. 6-2.5-3-

2) to the department

holds those taxes in trust for the state and

personally liable for the payment 0f

those taxes, plus any penalties and interest attributable t0 those taxes, to the

knowing fails t0 collect or remit those individual commits a level 6 felony.

If the individual

state.

taxes to the state, the

Sales tax are reported on a monthly basis to the Indiana Department of Revenue (IDOR) by form ST-103. Form ST—103 includes the following information: total sales, exempt sales, taxable sales, tax due, tax paid, and authorized signature‘ Form ST-103 is submitted electronically to the IDOR which is located at 100 N. Senate Avenue, Indianapolis, IN 46204. Before the document can be submitted the user checks a box agreeing with the following: “I declare

under penalties 0f perjury that the amounts displayed on this page are and complete. If there is a balance due, Iunderstand that I am

true, correct,

expected to submit payments electronically.”

The information reported on maintained by information

(total sales,

A business

A BT—l

the form ST-103 is summarized into a spreadsheet kept and Taxpayer Financials Summary. This spreadsheet reports sales tax tax due, and tax paid) on a monthly and yearly basis.

IDOR called

registers with

IDOR for

sales tax

by ﬁling a BT-l Business Tax Application.

includes the following information:

Name

Owner name, Legal name,

of contact personal responsible for ﬁling tax forms Partnership name, Corporate name, or other entity

name

including primary address 3. 4.

name 0r DBA or physical location including primary A list of owners, partners, or ofﬁcers Business trade

address

The form must be signed by the owner, general panner, corporate ofﬁcer, or resident agent it will be accepted by IDOR. The fonn states, “The partners or corporate ofﬁcers are each

before

personally, jointly, and severally liable for the sales and use tax collected and the withholding tax

withheld. These taxes are trust fund taxes and are not discharged in bankruptcy proceedings.

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

may impose a food and beverage tax.3 In Marion food and beverage tax.4 In Hendricks County there are two

In addition to sales tax, a county

County, there

two

(2) percent

possible food and beverage taxes: one for Hendricks

County and one

(2)

for Plainﬁeld, Ind.

The purpose for the search warrants executed on August 11, 2016 was to determine the restaurants actual total sales through the restaurants own internal documents, including daily cash register tapes, daily credit and debit card settlement reports, and monthly

accounting reports from the restaurants.

9701

Washington

Street, Indianapolis,

Teppanyaki Grill Supreme Buffet, Inc. incomorated in the State of Indiana on October 3, 2010 with an address 0f 9701 E. Washington Street, Indianapolis, IN 46229. Teppanyaki Grill Supreme Buffet, Inc. operated as Oriental buffet. On February l3, 2017, Teppanyaki Grill

Supreme Buffet, Inc. was administratively dissolved by the Indiana Secretary 0f State. On October 17, 2013, Teppanyaki Grill Buffet 9701, Inc. incorporated in the State of Indiana. Novemberil, 2013, Teppanyaki Grill Supreme Buffet, Inc. sold the business and assets to Teppanyaki

Grill

Supreme 9701,

Teppanyaki

Grill

Inc. for the

sum of one hundred thousand

Supreme Buffet 9701,

Inc.’s

dollars ($100,000).

2013 corporate income tax

return,

form

1120s, reports the following shareholders:

Name

Ownership Percentage

Sheng Gao

40%

Shau

30%

Yan Mei Yang

The 2013 income

tax return of Teppanyaki Grill Buffet 9701

Inc. reported gross receipts of one hundred dollars ($373,100) for this short period. Ordinary business income for this period was six thousand one hundred sixty—one dollars ($6,161). The tax return was prepared by U.S. Accounting, 15 Division Street 4‘“ ﬂoor, New York, NY 10002. Teppanyaki Grill Buffet 9701, Inc. uses this accounting ﬁrm for the preparation of income tax returns and sales tax retums. ,

three hundred seventy-three thousand

Guang Feng Li (as registered agent) ﬁled an anicles of King LI LLC. The principal ofﬁce is 9701 E. Washington Street, Indianapolis, IN 46229. On April 24, 2015, Shuai Li, 0n behalf 0f Teppanyaki Grill Buffet 9701 February, 13, 201 5,

incorporation for China

Inc.

ﬁled an Articles 0f Dissolution.

0n July

14,

2017,

Men Li

(incorporator) ﬁled an articles 0f

& Grill, Inc. The address for Daily Buffet & Grill, Inc. is 9701 Washington Street, Indianapolis, IN 46229. On December 27, 2017, Guang Feng Li ﬁled an articles of dissolution for China King LI LLC. incorporation for Daily Buffet

LC. 6-9-12-2(a) After January 1 but before June l of any year, the cityvcounty council of a county that contains a may adopt an ordinance to impose an excise tax, known as the county food and beverage tax, u Anicle III, Sec.121-201 ofthe Marion County code states “Aﬁer June 30, 2005, the county food and beverage tax

consolidated city 4

rate established in I,C.

6—9-12-5

hereby increased from one (l) percent t0 two (2) percent.

CASE NUMBER: 49G02-1805-F5-014314 Ze Xiu

FILED: 5/2/2018

Li signed the the BT-l Sales Application for Teppanyaki Grill Supreme Buffet

Incorporated as President, on October 27, 2010.

Ze Xiu

was

listed as the contact

person

responsible for ﬁling tax forms.

Shuai Li signed the BT-l Sales Application for Teppanyaki Grill Buffet 9701 as President on October 21, 2013. Shaui Lis

was

listed as the contact

person responsible for ﬁling

tax forms.

Guang Feng Li signed the BT-l Sales Application for China King Li LLC as Owner on February 13, 2015. Guang Feng Li was listed as the contact person responsible for ﬁling tax forms.

Inc.

Rick Albrecht conducted the sales tax analysis 0f Teppanyaki Grill Supreme Buffet 9701 Rick Albrecht worked for IDOR for thiIty-one (3 1) years where twenty-seven (27) of those

was spent working as a criminal investigator. As a criminal investigator, Rick Albrecht conducted criminal investigations and examination 0f individual taxpayer and business records. Rick Albrecht has conducted many criminal investigations where he was tasked with

years

determining the true amount 0f sales tax a business was required

to pay. Rick Albrecht has been and the Marion County Prosecutor’s Ofﬁce for approximately the last six (6) years and has continued to conduct similar investigations.

contracted by

IMPD

An initial search warrant was executed 0n

October

2014

Teppanyaki Supreme

Buffet 9701, Inc. (9701 E. Washington Street, Indianapolis, IN 46229).

Law enforcement

obtained daily credit/debit card documents, monthly internal sales reports, and monthly accounting reports. On August 11, 2016, a second search warrant was executed at 9701 E.

Washington Street, Indianapolis, IN 46229. This time the corporation was named China King LI LLC. Law enforcement obtained sales tax reports, a receipts and cash purchases document, and invoices. The purpose 0f the search warrants was to determine the restaurants actual total sales through the restaurant’s own internal documents

The monthly sales report is a document that summarizes sales data on a per day basis for a particular month. The summarized data includes the date, gross sales, credit/debit card sales, and cash sales. Rich Albrecht calculated Teppanyaki Supreme Buffet 9701, Inc. actual taxable sales and compared it with the sales ﬁgure reported to IDOR. If actual taxable sales exceed reported sales to IDOR then Teppanayki Supreme Buffet 9701, Inc. failed to accurately repon actual taxable sales t0 IDOR. Thus, Teppanyaki Supreme Buffet 9701, Inc. owes additional sales and food and beverage tax to IDOR. Rick Albrecht found that Teppanayki Supreme Buffet 9701, Inc.’s actual taxable sales to June 2014 were $2,409,804.31. However, Teppanayki Supreme Buffet

from November 2013

9701, Inc. reported $1,459,806.93 in sales to Inc. failed t0 report

$949,997.38 in sales t0

$ 1 8,999.95 in food and beverage tax to

IDOR. Thus, Teppanayki Supreme Buffet 9701,

IDOR and owes

IDOR.

$66,499.82 in sales tax and

CASE NUMBER: 49G02-1805-F5-014314 A summary 0f Rick Albrecht’s 9701, Inc‘

2013

sales tax analysis for

FILED: 5/2/2018

Teppanayki Supreme Buffet

as follows:

Reported Actual Sales

Sales Tax Not

Sales

Sales Not Reported

Paid

Food and Beverage Not Paid ($2,763.72)

November

$284,905.94

$146,719.82

($138,186.12)

($9,673.03)

December

$290,721.04

$178,838.33

($111,882.71)

($7,831.79)

($2,237.65)

Total:

$575,626.98

$325,558.15

($250,068.83)

($17,504.82)

($5,001.38)

A summary of Rick Albrecht’s 2014 sales tax analysis for Teppanayki Supreme Buffet 9701, Inc.

as follows:

Reported

Sales Tax Not

Actual Sales

Sales

Sales Not Reported

Paid

Food and Beverage Not Paid

January

$244,756.49

$154,006.64

($90,749.85)

($6,352.49)

($1,815.00)

February

$287,691.83

$177,523.27

($110,168.56)

($7,711.80)

($2,203.37)

March

$344,912.46

$215,578.66

($129,333.80)

($9,053.37)

($2,586.68)

April

$307,980.51

$191,057.98

($116,922.53)

($8,184.58)

($2,338.45)

May

$328,439.43

$201,420448

($127,018.95)

($8,891.33)

($2,540.38)

June

$320,396.61

$194,661.75

($125,734.86)

($8,801.44)

($2,514.70)

$1,834,177.33

$1,134,248.78

($699,928.55)

($48,995.00)

($13,998.57)

Total:

In addition to Teppanyaki Supreme Buffet 9701, Inc.’s internal monthly sales reports, Rick Albrecht reviewed monthly accounting reports. These monthly accounting reports are faxed to

Teppanyaki Supreme Buffet 9701,

Inc.s’ accountants, U.S4

Accounting, Inc. These reports

include the year, month, credit card sales, cash sales, total receipts (less tips), and total

tips.

Teppanaki Supreme Buffet 9701, Inc.’s income tax returns. All reports include the markings that the documents were faxed t0 U‘S. Accounting. These reports are used

to create

Rick Albrecht compared the monthly reports to the sales reported t0

total sales reported

on these monthly accounting

IDOR. Rick Albrecht found that Teppanayki Supreme Buffet

9701, Inc. underreported

its sales sales to U.SA Accounting, Inc. by $135,944.46. Thus, Teppanyaki Supreme Buffet Inc. ’s income tax return would be incorrect. The following chart summarizes Rick Albrecht’s analysis:

Sales Reported to

Sales Reported

Accountant

to IDOR

Difference

Jan-14

$167,865.06

$154,006.64

($13,858.42)

Feb-14

$193,500.36

$177,523.27

($15,977.09)

Mar-14

$234,980.74

$215,578.66

($19,402.08)

Apr—14

$208,253.20

$191,057A98

($17,195.22)

May—14

$219,548.32

$201,420.48

($18,127.84)

Jun-14

$212,181.31

$194,661.75

($17,519.56)

IuI—14

$204,785.51

$187,876.61

($16,908.90)

CASE NUMBER: 49G02-1805-F5-014314 Aug-14

313839278

$205,343.13 |

($16,955.35)

Total:

FILED: 5/2/2018

$1,646,462.63

$1,510,513.17

($135,944.46)

Rick Albrecht reviewed the materials from the second search warrant executed at China King LI LLC, 9701 E. Washington Street on August 11, 2016. Rick Albrecht found and analyzed Sales Tax Reports. The Sales Tax Reports are handwritten documents that contact the name 0f the corporation, address, time period, credit card not including tip sales totals, credit card tips total,

and cash

sales total.

The Sales Tax Reports are from April 2015 through July 2016. Rick

Albrecht summarized the data from the Sales Tax Repons and compared the total sales t0 the sales reported to IDOR. Rick Albrecht found that China King LI LLC underreponed sales to

IDOR;

thus,

China King LI

LLC owes

additional sales tax to

IDOR.

Rick Albrecht found that China King LI LLC’s actual sales from April 2015 to July 2016 was $2,776,428.60; however, China King LI LLC only reported $2,572,385.27 in sales to IDOR. The underreported sales amount was $204,043.33. China King LI LLC owes IDOR $ 14,283 .03 in sales tax

and $4,080.87

The following

in food

chart

and beverage

tax.

summarizes Rick Albrecht’s analysis

for

201 5:

Actual Sales per

Food and

Sales Tax

Reported to

Report

IDOR

Difference

Not Paid

Paid

April

$194,127.44

$194,127,44

$0.00

May

$199,083.35

$182,645.27

($16,438.08)

($1,150.67)

($328.76)

June

$167,858.69

$163,173.04

($4,685.65)

($328.00)

($93.71)

($1,008.74)

($288.21)

($988.44)

($282.41)

Sales

Tax

Beverage Tax Not

July

$174,527.35

$160,116.83

($14,410.52)

August

$171,015.38

$156,894.84

14,120.54)

September

$153,060.44

$140,422‘42

12,638.02)

($884.66)

($252.76)

October

$176,645.36

$152,059.96

14,585.40)

($1,020.98)

($291.71)

November

$164,332.08

$150,763.37

($13,568.71)

($949.81)

($271.37)

Decem ber

$156,382.62

$143,470.29

(S 12,912.33)

($903.86)

($258.25)

$1,557,032.71

$1,453,673.46

($103,359.25)

($7,235.15)

($2,067.19)

Totals:

The following

chart

summarizes Rick Albrecht’s analysis for 2016:

Actual Sales per Sales Tax

Report

Food and Reported to

IDOR

Sales

Difference

Tax

Not Paid

Beverage Tax Not Paid

January

$171,244.35

$157,104.90

($14,139.45)

($989.76)

($282.79)

February

$177,458.98

$162,806.40

($14,652.58)

($1,025.68)

($293.05)

March

$186,712.38

$171,295.76

($15,416.62)

($1,079.16)

($308.33)

April

$176,429.50

$161,861.93

($14,567.57)

($1,019.73)

($291.35)

May

$176,534.17

$161,957.95

($14,576.22)

($1,020.34)

($291.52)

June

$159,003.20

$145,874.50

($13,128.70)

($919.01)

($262.57)

CASE NUMBER: 49G02-1805-F5-014314 $172,013.31|

July

$157,810.37]

$1,219,395.89

Totals:

$1,118,711.81

5390 W. Teppanyaki West,

($14,202.94)| ($100,684.08)

38’” Street, Indianapolis,

FILED: 5/2/2018

(3994.21)]

(3284.06)]

($7,047.89)

($2,013.68)

IN 46254

5390 West 38m Street, Indianapolis, Indiana, 46254. the State 0f Indiana on March 13, 2014 by its

Inc. is located at

Teppanyki West, Inc was incorporated in incorporator Sheng Yi Li. Teppanyaki West,

Inc. did business as

Teppanyaki

Grill

and Buffet.

From April 2014 to January 2015, the business changed ownership two (2) times. First, the business was owned by Teppanyaki 38, Inc. whose president was Sheng Yi Li and secretary was Chun Yong Chen. On April 1, 2014 Teppanyaki 38, Inc. sold the business to Teppanyaki West, Inc. for $80,000. Teppanyki West, Inc.’s president was Sheng Yi Li and secretary Sheng Yi Li. On January 1, 2015, Teppanyki West, Inc. sold the restaurant to Ze Chang Li. Sheng Yi Li signed the BT-l Sales Application as President on May 16, 2011 and March Sheng Yi Li, on both forms, is listed as the contact person responsible for ﬁling tax

20, 2014.

forms.

A cash

daily ledger sheet

a document maintained by Teppanyaki West, Inc. that reports the

and credit/debit card

sales. These daily sheets appear to be the original document on which Teppanyaki West, Inc. records sales. Complete daily ledger sheets were obtained for July 2015, May 201 6, and June 2016. These daily sheets m0 st accurately reﬂect the restaurant’s true cash and credit/dcbit card sales.

date,

sales,

The sales amounts on the daily ledger sheets were added for each month. Rick Albrecht found that for the thIee months of daily ledger sheets the total sales amount was $744,134.89 with total credit card sales of $412,339 and total cash sales of $331,795.68. The following chart summarizes the daily ledger

sheets:

Credit Card

Cash

Total Sales

Jul—lS

$ 102,750.29

85,322.29

188,072.58

May—16

$ 107,615.22

86,402.00

194,017.22

Jun-16

97,522.25

73,972,00

171,494.25

190,550.84

Mmmmm

Jul-16

$ 104,451.45

86,099.39

Total:

$ 412,339.21

331,795.68

Rick Albrecht then compared the restaurants actual sheets, to the sales reported to the

IDOR. The

$ 744,134.89

sales, as reported

on the daily ledger from

sales reported ﬁgures are obtained

subpoenaed Taxpayer Financials Summary for Teppanyaki West, Inc. Rick Albrecht found that Inc,, for the three months of daily ledger sheets, failed t0 report $299,780.45

Teppanyaki West,

which resulted in $20,984 in unpaid sales tax and $5,995.61 The following chart summarizes Rick Albrecht’s analysis:

in sales tax.

Total Sales

unpaid food and beverage

Reported

Not Reported

Unpaid

Unpaid Food and

Sales

Sales Tax

Beverage Tax

CASE NUMBER: 49G02-1805-F5-014314 JuI-15

$188,072.58

Mav—16 Jun-16

FILED: 5/2/2018

$102,177.33

($85,894.75)

($5,012.63)

($1,717.90)

$194,017.22

$119,181.31

($74,835.91)

($5,238.51)

($1,496.72)

$171,494.25

$109,795.71

($51,598.54)

($4,318.90)

($1,233.97)

Jul—16

$190,550.84

$113,199.59

($77,351.25)

($5,414.59)

($1,547.03)

Total:

$744,134.89

$444,354.44

($299,780.45)

($20,984.63)

($5,995.61)

A monthly accounting report is a document that Teppanyaki accountant, U.S. Accounting Inc. (15 Division Street,

preparation of tax returns.

Teppanyaki West,

Inc.

The monthly accounting

West,

Inc.

New York, New York,

report

prepared by

An authorized member of Teppanyaki

West,

Inc.

sends to

its

10002), for

management of conﬁrms and certiﬁes

that the sales and expenses reported on the monthly accounting report are correct. Law enforcement obtained monthly accounting reports for the period 0f September 2014 through July 2016 with the exception of October 2014 and March 2015.

Rick Albrecht’s examination of the monthly accounting reports discovered that Teppanyaki West, Inc. failed to report to their accounting ﬁrm the accurate amount 0f cash

The

daily ledger sheet

total sales.

show

that cash sales

sales.

were forty-four point ﬁﬁy-nine percent (44.59%) of

The monthly accounting reports show

that cash sales were sixteen point thirty—three

percent (16.33%) of total sales.

The total

sales

ﬁgures supplied in the monthly accounting repons are

IDOR. For the monthly

sales reported t0

less

than the

total

the available monthly repoﬁs in 2014, Teppanyaki

sales. As a result, Teppanyaki West, Inc. failed to pay $2,065.91 in sales tax and $590.26 in food and beverage tax. The following chart summarizes Rick Albrecht’s ﬁndings for 2014 (the ﬁrst three columns 0n the left are data taken from the monthly accounting report):

West, Inc. failed to report $29,512.91 in total

Credit Card

Cash

Reported to

Sales

Not

Sales T‘aX Not

Total

IDOR

Reported

3:321:22

Pald

Not Pald

Sep-l4

$84,157.11

$19,489.66

$103,646.77

$95,086.03

($8,560.74)

($599.25)

($171.21)

Nov-14

$101,118.63

$22,880.51

$123,999.14

$113,760.68

($10,238.46)

($716.69)

($204.77)

Dec-14

$107,7 17.87

$22,037.46

$129,755.33

$119,041.59

($10,713.74)

($749.96)

($214.27)

Total:

($29,512.94)

($2,065.91)

($590.26)

In 2015, the total sales reported in the

reports exceeded total reported sales t0

Teppanyaki West

IDOR by

Inc.’s

monthly accounting

1,256.26. Thus, Teppanyaki

West

Inc.

pay $7,787.94 in sales tax and $2,225.13 in food and beverage tax. The analysis summarized in the following chart (the ﬁrst three columns on the leﬁ are data taken from monthly accounting report): failed to

Credit Card

Cash

Total

ReplgrgeRd

the

Food and

2:]:233;

ilaolfsplia:

Beverage

Not Paid

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

Jan-15

$107,996.31

$24,076.81

$132,073.12

$121,168.00

($10,905.12)

($763.36)

($218.10)

Feb-lS

$118,828.19

$24,538‘74

$143,366.93

$131,529.29

($11,837.64)

($828.63)

($236.75)

Apr-15

$104,450.17

$21,692.71

$126,142.88

$115,727.41

($10,415.47)

($729.08)

($208.31)

May—15

$117,161.06

$21,534.41

$138,695.47

$127,243.55

($11,451.92)

($801.63)

($229.04)

Jun-15

$98,662.80

$20,223.65

$118,886.45

$109,070.13

($9,816.32)

($687.14)

($196.33)

JuI—15

$100,439.18

$10,934.05

$111,373.23

$102,177.83

($9,195.40)

($643.68)

($183.91)

Aug-15

$104,755.80

$20,499.51

$125,255.31

$114,913,12

($10,342.19)

($723.95)

($206.84)

$ep—15

$82,821.31

$17,626.14

$100,447.45

$92,153.62

($8,293.83)

($580.57)

($165.88)

Oct-lS

$95,011.42

$18,986.92

$113,998.34

$104,585.64

($9,412.70)

($658.89)

($188.25)

NOV<15

$86,284.64

$19,004.74

$105,289.38

$95,270.06

($10,019.32)

($701.35)

($200.39)

Dec-lS

$97,417.53

$18,441.62

$115,859.15

$106,292.80 Total:

In 2016, the total sales reported in the

reports exceeded total reported sales t0

($9,566.35)

($669.64)

($191.33)

($111,256.26)

($7,787.94)

($2,225.13)

Teppanyaki West

IDOR by

Inc.’s

monthly accounting

$72,123.38. Thus, Teppanyaki West Inc. failed

pay $5,048.64 in sales tax and $1 ,442.47 in food and beverage tax. The following chart summarizes this analysis (the ﬁrst three columns on the left are data taken from the monthly accounting report):

Cash

Tota

Not

Sales Tax

Food and

Reported

Not Paid

Beverage

Sales

‘

Credit Card

Reported

Jan-16

$101,231.36

$18,884.21

$120,115.57

$110,197.77

($9,917.80)

($694.25)

($198.36)

Feb-16

$107,780.59

$20,050.29

$127,830.88

$117,276.04

($10,554.84)

($738.84)

($211.10)

Mar—16

$110,643.12

$20,107.41

$130,750.53

$119,954.61

($10,795.92)

($755.71)

($215.92)

Apr-16

$102,291.71

$19,532.91

$121,824.62

$111,765.70

($10,058.92)

($704.12)

($201.18)

May-16

$110,164.15

$19,743.48

$129,907.63

$119,181.31

($10,726.32)

($750.84)

($214.53)

Jun-16

$101,415.18

$18,262.14

$119,677.32

$109,795.71

($9,881.61)

($691.71)

($197.63)

Jul-16

$103,578.22

$19,809.34

$123,387.56

$113,199.59

($10,187.97)

($713.16)

($203.76)

Total:

($72,123.38)

($5,048.64)

($1,442.47)

Rick Albrecht used data from the daily cash register repons

determine that cash sales

constituted approximately forty-four point ﬁﬂy-nine percent (44.59%) of sales at Teppanyaki

West

Inc.

Using 44.59% as a baseline for cash sales, Rick Albrecht determined that for the period September 2014 through July 20165 the business failed to report to the Indiana Depanment of

Revenue one million ninety-nine thousand nine hundred and ninety—four dollars ($1,099,994) in sales of food and drink and failed to remit taxes owed ninety-eight thousand nine hundred and ninety-nine dollars ($98,999) in sales tax and food and beverage tax

the Indiana Department

Revenue.

Excluding October 2014 and March 2015, for which accounting records were unavailable,

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

SALES NOT REPORTED AND SALES TAX NOT PAID SALES NOT REPORTED TAX NOT PAID

YEAR 2014

$143,693

$12,932

2015

$571,281

$51,415

2016

$385,019

$34651

TOTAL

$1,099,994

$98,999

2641 Maple Point Drive. Lafayette, Indiana 47905 Teppanyaki

Grill

Super Buffet,

March

12, 201 5

by Chunhua Wang. Teppanyaki

engage in food service business

2641 Maple Point Drive, Lafayette, incorporated in the State of Indiana on Super Buffet, Inc. was incorporated to

Inc. is located at

Indiana 47905. Teppanyaki Grill Super Buffet, Inc.

activity. In the

was

Grill

search warrant, law enforcement recovered

documents that establish the ownership and ofﬁcers of the business. The president 0f Teppanyaki Grill Super Buffet, Inc is Ze Geng Li and he owns sixty percent (60%) 0f the corporation. The treasurer and secretary 0f Teppanyaki Grill Super Buffet, Inc is Chunhua Wang and she owns forty percent

On Pan was

(40%) of the company.

July 19, 201

Fu Guan Pan signed the BT-l Sales Application

listed as the contact

On June 25, Jiayuan Zheng

was

as President.

Fu Guan

person responsible for ﬁling tax forms.

2012, Jiayuan Zheng signed the BT-l Sales Application as President. person responsible for ﬁling tax forms.

listed as the contact

On March 29, 2015, Chunhua Wang signed the BT-l Sales Application as Chunhua Wang was listed as the contact person responsible for ﬁling tax forms.

President.

Rick Albrecht conducted the sales tax analysis 0f Teppanyaki Grill Super Buffet, Inc. Rick Albrecht reviewed daily cash register tape, daily credit and debit card settlement reports, and monthly accounting reports. These documents were obtained by law enforcement, from the

August

2016 search warrant, from the restaurant located

2641 Maple Point Drive,

Lafayette, Indiana 47905.

Daily cash register tape register tape provides date

credit/debit payments,

tape

summary was

and

of the total

a daily report generated by the cash register. The daily cash report, total sales, tax collected, tips received, cash received,

number of customers.

An examination

available for examination for the periods April

is kept on a daily basis the four months 0f records one hundred (120) daily cash register tape summaries.

the information

of the daily cash register

2016 through July 2016. Since is

comprised of approximately

The daily cash register tape was summarized 0n a monthly basis. True sales are the sales ﬁgures taken from the daily cash register tape. True sales do not include the tax total or the tips total as those were separated out 0n the report. Rick Albrecht found that Teppanyaki Grill Super Buffet failed to report $252,169.29 in sales from April 2016 through July 2016. This resulted in a sales tax

underpayment of $ 1 7,651.85. The following chart summarizes Rick Albrecht’s daily

cash register tape analysis:

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

True Cash

Reported

True Sales

Sales

Reported

Paid

Apr-16

$195,158.38

$89,352.48

$131,317.82

($63,840.56)

($4,468.84)

May—16

$196,848.31

$86,877.31

$134,118.69

($62,729.62)

($4,391.07)

Jun-16

$175,059.06

$84,760.18

$114,184.40

($60,874.66)

($4,261.23)

$189,878.16

$90,570.80

$125,153.71

($64,724.45)

($4,530.71)

$756,943.91

$351,560.77

$504,774.62

($252,169.29)

($17,651.85)

JuI—16

Total:

The daily cash register tape summary made by Teppanyaki Grill Super Buffet, Inc. summarizes

Sales

Not

Sales Tax Not

conﬁrm that just less than half of all sales made in the form of cash. The following chart

reports are

this analysis:

True Cash True Sales

Sales

Percentage of Total Sales

Apr-16

$195,158.38

$89,352.48

46%

May—16

$195,848.31

$86,877.31

44%

Jun-16

$175,059.06

$84,760.18

48%

JuI-16

$189,878.16

$90,570.80

48°o

Total:

$756,943.91

$351,560.77

46%

Grill

Super Buffet,

Teppanyaki

Accounting, Inc. which

Inc. supplied

monthly

located at 138 E. Broadway,

reports to

its

accounting ﬁrm, U.S.

New York, New York 10002.

The

monthly accounting reports include credit/debit card sales, cash sales, total receipts, and total tapes. The monthly report is authorized by a member 0f Teppanyaki Grill Super Buffet, Inc. and states that the

ﬁnancial information Will be used for the preparation 0f the Sales and Use Tax

Return. Monthly accounting reports were available from

March 2015 through December 2015

and January 2016 through July 2016, excluding February 2016. Rick Albrecht’s analysis concludes that Teppanyaki Grill Super Buffet, Inc. its cash sales to its accounting ﬁrm, U.S. Accounting. Rick Albrect compared the cash register tape and monthly account reports for the only matching time period, April 2016 through July 2016. Rick Albrecht found that Teppanyaki Grill Super Buffet, Inc. failed to report a total of $272,177.99 in cash sales for that four (4) month period. The following chart underreponed

summarizes

that analysis:

Cash Sales (Register Tape)

Cash Sales (Monthly Report)

Difference

Apr-16

$89,352.48

$20,079.87

($69,272.61)

May-16

$86,877.31

$19,376.20

($67,501.11)

Jun-16

$84,760.18

$19,190.43

($65,569.75)

$90,570.80

$20,736.28

($69,834.52)

$351,560.77

$79,382.78

($272,177.99)

Jul-16

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

Rick Albrecht was able to expand this analysis t0 the rest ofthe recovered monthly accounting reports by comparing cash sales a percentage 0f total sales. First, Rick Albrecht discovered that gross receipts from the monthly accounting reports more closely matched sales reported to that

IDOR than the

Teppanyaki

Grill

sales

from the daily cash

Super Buffet,

Rick Albrecht found

Inc. reported, to UAS.

Accounting, cash sales at approximately ﬁfteen percent (15%) of total sales instead of its actual percentage 0f cash which is approximately forty-six percent (46%)6.

For 2015, Teppanyaki Grill Super Buffet reported cash receipts to U.S. Accounting.

The following

15.54% of its gross

chart summarizes this analysis:

Sales

Gross Receipts

Cash Sales

Reported to

from monthly

Reported to

Percentage of

IDOR

report

Firm

Gross Receipts

Mar—15

$58,334.27

$62,417.67

$9,934.36

15.92%

Apr-lS

$123,020.59

$131,632.04

$20,286.61

15.41%

May-15

$127,953.10

$136,909.82

$19,647.58

14.35%

Jun-15

$105,578‘80

$112,969.32

$17,904.37

15.85%

Jul-lS

$116,030.01

$124,152.12

$19,918.50

16.04%

Aug—15

$129,636.16

$138,710.69

$22,024.64

15.88%

Sep-lS

$109,091.47

$116,727‘87

$18,997.51

16.28%

Oct—15

$119,281.97

$127,631.71

$19,857.58

15.56%

Nov-15

$116,780.70

$124,955.35

$19,532.67

15.63%

Dec—lS

$137,199.44

$146,803.41

$21,962.39

14.96%

$1,222,910.00

$190,066.21

15.54%

Total:

$1,142,906.51

For 2016, Teppanyaki receipts to U.S. Accounting.

Grill

Super Buffet reported cash

The following

chart

summarizes

sales as

14.43% 0f its gross

this analysis:

Sales

Gross Recipts

Cash Sales

Reported to

from monthly

Reported to

Percetage of Gross

IDOR

report

Firm

Receipts

Jan-16

$129,686.46

$138,764,51

$20,017.25

14.43%

Mar-16

$138,341.49

$148,025.40

$19,935.05

13.47%

Apr~16

$131,317.82

$140,510.07

$20,079‘87

14.29%

May-16

$134,118.69

$143,507.00

$19,376.20

13.50%

Jun—16

$114,184.40

$122,177.31

$19,190.43

15.71%

JuI-16

$125,153.71

$133,914V48

$20,736.28

15.48%

$772,802.57

$826,898.77

$119,335.08

14.43%

Total:

sales as

sales,

Percentage obtained from the analysis ofthe daily cash register tape.

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

Rick Albrecht used data from the daily cash register reports t0 determine that cash sales 46% of sales at Teppanyaki Grill Super Buffet, Inc. The restaurant

constituted approximately

reported to

IDOR that

cash sales accounted for only 4.61% 0f its

sales.

Rick Albrecht’s review of Teppanyaki Grill Super Buffet, Inc’s bank and accounting records uncovered further inconsistencies in the restaurant’s treatment of cash sales. Monthly accounting reports prepared by the accounting ﬁrm U. S. Accounting, Inc. ofNew York, New

York show Teppanyaki

Inc. showed that Teppanyaki Grill Super Buffet, Inc 15.54% of total sales to their accounting ﬁrm. Teppanyaki Grill Super Buffet, Inc. ’s bank statements showed that cash deposits for the period March 2015 thru July 2016 were less than 1% of total bank deposits.

Grill

Super Buffet,

reported that cash sales comprised

Using

46% as

a baseline for cash sales, Rick Albrecht determined that for the period

March 2015 through July 2016 the business failed t0 report t0 the Indiana Department of Revenue one million four hundred and twenty nine thousand nine hundred and ﬁfty-one dollars and forty-three cents ($1 ,429,95 1 .43) in sales of food and drink and failed to remit taxes owed of one hundred thousand ninety-six dollars and sixty cents ($100,096.60) in sales tax and food and beverage tax t0 the Indiana Department 0f Revenue.

SALES NOT REPORTED AND TAX NOT PAID

YEAR

REPORTED

ACTUAL

NOT

TAX NOT

SALES

REPORTED

PAID

2015

$1,142,906.51

$1,925,287. 1 5

$782,380.64

$54,766.64

2016

$904,643.14

$1,552,213.93

$647,570.79

$45,329.96

TOTAL

$2,047,549.65

$3,477,501.08

$1,429,951.43

$100,096.60

285

E. Colliseum Blvd,

Fort Wayne, Indiana 46805

Teppanyaki Supreme Buffet 285, Inc. is located at 285 E. Colliseum Blvd, Fort Wayne, A biil of sale shows that in February 2014 the restaurant was sold to Teppanyaki

Indiana 46805.

Supreme Buffet 285, Inc. by Teppanyaki Supreme Buffet, Inc for forty thousand dollars The sales agreement was signed by the president of each corporation. Kong Ji Tang, the seller, signed for Teppanyaki Supreme Buffet, Inc. Guo Wu Wu, the purchaser, signed for Teppanyaki Supreme Buffet 285, Inc. ($40,000).

Teppanyaki Supreme Buffet 285, Inc was incorporated

in the State of Indiana 0n The business address shown on the incorporation documents is 285 E. Coliseum Blvd, F011 Wayne, Indiana 46805. The president of the corporation is Guo Wu Wu. Fen Lian Gao is the treasurer and secretary of the corporation. The Operating Agreement of Teppanyaki Supreme Buffet 285, Inc. states that the corporation is

February 26, 2014 by

its

incorporator,

Guo

Wu Wu.

formed for the purpose of operating a buffet restaurant and to engage in any lawful act or activity for which corporations may be organized. The operating agreement provides the following shareholders:

Shareholder

CASE NUMBER: 49G02-1805-F5-014314 Guo

Wu Wu

Fen Lian Gao Ai

XI’n

45% 20% 20%

Jiang

Yan Fang

FILED: 5/2/2018

15%

Rick Albrecht conducted the sales tax analysis of Teppanyaki Supreme Buffet 285, Inc. Rick Albrecht reviewed the daily cash register report which was obtained from the August 1 1, 2016 search warrant from the restaurant located at 285 E. Colliseum Blvd, Fon Wayne, Indiana 46805. The daily cash register report

a daily summaly of the recorded data inputted into a cash cash register, then that event will not be recorded. The daily cash register tape for Teppanyaki Supreme Buffet 285, Inc. summarizes the daily total sales, cash collected, credit collected, and tax received. is

On March President.

Guo

30, 2012, Kong Jie Tang signed the BT-l Sales Tax Application was Kong Jie Tang was listed as the contact person responsible for ﬁling tax forms.

On February 11, 2014, Guo Wu Wu signed the BT—l Sales Tax Application as President. Wu Wu was listed as the contact person responsible for ﬁling tax forms.

Daily cash register reports were available for 19 months between October 2014 and July 20 1 6. Rick Albrecht summarized the daily actual sales from the daily cash register reports into their

monthly

totals as follows:

Actual Sales

Oct—14

187,743.13

Nov-14

211,724.34

Jan—15

183,306.13

Feb-15

197,520.85

Mar-lS

210,557.69

Apr~15

190,596.73

May-lS

188,517,56

Jun~15

178,839.30

Jul-15

187,944.65

Aug~15

194,437.83

Sep-ls

174,498.79

Oct-15

208,137.07

Nov-lS

194,080.91

Dec-15

222,005.38

Jan-16

209,075.39

Feb-16

217,803.50

May-16

206,219.60

Jun416

185,492.57

Ju|~16

204,703.23

CASE NUMBER: 49G02-1805-F5-014314 The

total actual sales for the

time period listed above

The taxpayer ﬁnancials summary were obtained by the

FILED: 5/2/2018

$3,753,204.71.

authority 0f a

subpoena and

provided t0 Rick Albrecht for review. Rick Albrecht compared the reported sales to the restaurants” actual sales

and found that Teppanyaki Supreme Buffet 285,

Inc. failed t0 report to

IDOR

$1,237,452.52. Thus, Teppanyaki Supreme Buffet 285, Inc. failed to pay $86,621.68 in sales tax to IDOR. The following chart summarizes Rick Albrecht’s ﬁndings:

Reported Sales

Actual Sales

Unpaid Sales Tax

Unreported Sales

OCt-14

120,378.97

187,743.13

(67,364.16)

(4,715.49)

Nov~14

123,120.46

211,724.34

(88,603.88)

(6,202.27)

Jan-lS

119,990.42

183,306.13

(63,315.71)

(4,432.10)

Feb-15

133,682.15

197,520.85

(63,838.70)

(4,468.71)

Mar-15

144,846.83

210,557.69

(65,710.86)

(4,599.76)

Apr—15

127,690,74

190,596‘73

(62,905.99)

(4,403.42)

May-ls

134,115.83

188,517.56

(54,401.73)

(3,808.12)

Jun-lS

122,256.69

178,839.30

(56,582.61)

(3,960.78)

JuI-15

129,317.37

187,944.65

(58,627.28)

(4,103.91)

Aug-lS

131,743.56

194,437.83

(62,694427)

(4,388.60)

Sep-ls

117,513.20

174,498.79

(56,985.59)

(3,988.99)

Oct—15

142,219.49

208,137.07

(65,917.58)

(4,614.23)

Nov-lS

130,235.52

194,080.91

(63,845.39)

(4,469.18)

Dec—lS

150,245.76

222,005.38

(7 1,759.62)

(5,023.17)

Jan-16

141,145.19

209,075.39

(67,929.20)

(4,755.04)

Feb-16

147,291.43

217,803.50

(70,512.07)

(4,935.84)

May—16

138,241.24

206,219.60

(67,978.36)

(4,758.49)

Jun—16

124,226.20

185,492.57

(61,266.37)

(4,288.65)

JuI-16

137,490.14

204,703.29

(67,2 13.15)

(4,704.92)

2,515,752.19

(1,237,452.52)

s 3,753,204.71

(86,621468)

Rick Albrecht used data from the daily cash register reports to deten‘nine that cash sales 46% of sales at Teppanyaki Supreme Buffet 285, Inc. The restaurant reported t0 IDOR that cash sales accounted for only 7.81% of its sales. constituted approximately

Rick Albrecht’s review of Teppanyaki Supreme Buffet 285’s bank and accounting records uncovered further inconsistencies in the restaurant’s treatment 0f cash sales. Monthly

accounting reports prepared by the accounting

York show Teppanyaki Supreme Buffet 285,

ﬁrm U.

Accounting, Inc.

Inc. failed t0 report

ofNew York, New 77% of cash

approximately

sales t0 their accounting firm. failing to report one million three hundred fifty thousand three hundred thirty-four dollars ($1,350,334) to their accounting firm during those nineteen months for which daily cash register reports were available, Teppanyaki Supreme Buffet 285, Inc. ’s bank statements showed that cash deposits for the period March 2014 thru July 201 6 were only

2.80% 0f total bank

deposits.

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

Using 46% as a baseline for cash sales, Rick Albrecht determined that for the period March 2014 thru July 2016 the business failed to report t0 the Indiana Department of Revenue three million one hundred ninety thousand sixty-four dollars ($3,190,064) in sales of food and drink and failed to remit taxes owed of two hundred fifty-five thousand two hundred five dollars ($255,205) in sales tax and food and beverage tax to the Indiana Department of Revenue. The sales tax rate for this time period was seven percent. The food and beverage tax rate in Allen

County for this time period was one SALES

YEAR

percent.

NOT REPORTED AND TAX NOT

REPORTED

PAID

ACTUAL SALES

NOT REPORTED

TAX NOT PAID

SALES 2014

$1,261,401.03

$2,398,143.87

$1,136,742.84

$102,306.86

2015

$1,463,867.14

$2,674,958.26

$1,211,091.12

5108,9982

2016

$833,883.49

$1,676,114.50

$842,231.01

$75,800.79

TOTAL

$3,559,151.66

$6,749,216.63

$3,190,064.97

$255,205.19

1310

38M

Street,

Marion, Indiana 46953

Teppanyaki Buffet Inc. is located at 13 10 W. 38‘“ Street, Marioni, Indiana 46953. Teppanyaki Buffet, Inc. was incorporated in the State of Indiana on December 15, 2011 by Jin Qiu Zhao. The Anicles 0f Incorporation state the business is located at 1310 W. 38‘“ Street, Marion, Indiana 46953. The Indiana Business Entity Report ﬁled with the Indiana Secretary of State shows Jin Qiu Zhao is President 0f Teppanyaki Buffet, Inc. In the execution 0f the search warrant

on August

2016, law enforcement obtained

copies of foml “Schedule K-l

Revenue Service,

Form 11203” and form “1 125-E.” According t0 the Internal “Schedule K-l Form 11205” is a document used to report a person’s share of a

corporation’s income, deductions, credits, or other items. This document contains a section to document a shareholder’s percentage of stock ownership. “Form 1125-E” is required if an entity

has

of $500,00 or more, and deducts compensation for ofﬁcers. “Form 11-25E” an ofﬁcer’s percentage 0f stock owned and the amount 0f compensation.

total receipts

details

The following

chart

summarizes the stock ownership 0f Teppanyaki Buffet, Jin

Dai

Qui Zhao

Sheng

Qin Lian

On May Zhao was

15,

Lian

Inc.:

50%

40% 10%

20 12, Jin Qiu Zhao signed the BT-l Sales Application as President. Jin Qiu

listed as the contact

person responsible for ﬁling tax forms.

Rick Albrecht conducted the sales tax analysis of Teppanyaki Buffet, Inc. Rick Albrecht reviewed a sales ledger book which was obtained from the search waxrant executed 0n August 1 l, 2016. The recovered sales ledger book contained sales information for the period of February 2015 through July 2016. The sales ledger book details the date, the gross amount of sales, sales

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

made by

cash, sales made by credit card/debit card and tips. Rick Albrecht compared the information from the sales ledger book to the sales reported to IDOR. Rick Albrecht found that, for the months contained in the sales ledger book, Teppanyaki Buffet, Inc. underreported sales

by $915,162.10 and

failed t0

pay $64,061

.35 in sales tax.

For 2015, Rick Albrecht found that Teppanyaki Buffet, Inc. failed to report $546,667.58 and failed to pay $38,266.73 in sales tax. The following chart summarizes Rick

in taxable sales

Albrecht’s 2015 analysis (Actual gross and taxable sales are obtained from Teppanayki Buffet, Inc.’s daily ledger book):

Actual Gross

Actual Taxable

Reported

Sales Not

Sales

Reported

$117,324.85

$109,649.39

$62,755.00

($46,894.39)

($3,282.61)

Mar>15

$124,216.80

$116,090.47

$67,992.00

($48,098.47)

($3,366.89)

Apr-lS

$124,644.23

$116,489.93

$72,410.00

($44,079.93)

($3,085.60)

May—lS

$141,642.28

$132,375.96

$80,147.00

($52,228.96)

($3,656.03)

Jun-15

$131,727.54

$123,109.85

$71,311.00

($51,798.85)

($3,625.92)

Jul-15

$129,114.44

$120,667.70

$68,323‘00

($52,344.70)

($3,664.13)

Aug-15

$119,072.13

$111,282.36

$61,801.00

($49,481.36)

($3,463.70)

Sep‘ls

$116,414.29

$108,798.40

$62,419.00

($46,379.40)

($3,246.56)

Oct—15

$127,969.57

$119,597.73

$67,653.00

($51,944.73)

($3,636.13)

Nov-15

$116,367.76

$108,754.92

$62,414.00

($46,340.92)

($3,243.86)

Dec~15

$137,732.40

$128,721.87

$71,646.00

($57,075.87)

($339531)

$1,386,226.29

$1,295,538.58

$748,871.00

($546,667.58)

($38,266.73)

Feb»15

Total:

Sales Tax Not

Paid

For 2016, Rick Albrecht found that Teppanyaki Buffet, Inc. failed to report $368,494.52 and failed t0 pay $25,794.62 in sales tax. The following chart summarizes Rick

in taxable sales

Albrecht‘s 2016 analysis (Actual gross and taxable sales are obtained from Teppanayki Buffet, Inc.’s daily ledger book):

Actual Gross

Actual Taxable

Reported

Sales Not

Sales Tax

Sales

Reported

Paid

Not

Jan-16

$117,218.96

$109,550.43

$69,852.00

($39,698.43)

($2,778.89)

Feb-16

$135,105‘06

$126,266.41

$69,918.00

($56,348.41)

($3,944.39)

Mar-16

$133,012.65

$124,310.89

$70,255.00

($54,055.89)

($3,783.91)

Apr-16

$135,913.69

$127,022.14

$71,174.00

($55,848.14)

($3,909.37)

May-16

$132,070.56

$123,430.43

$69,627.00

($53,803.43)

($3,766.24)

Jun-16

$127,559.88

$119,214.84

$68,559.00

($50,655.84)

($3,545.91)

JuI-16

$132,632.26

$123,955.38

$65,871.00

($58,084.38)

($4,065.91)

Total:

$913,513.06

$853,750.52

$485,256.00

($368,494.52)

($25,794.62)

During the execution of the search warrant, law enforcement recovered copies of Teppanyaki Buffet, Inc.’s federal (Form 11208) and state (Form IT-ZOS) 2015 income tax returns. The forms show that Teppanyaki Buffet Inc. engaged the accounting services 0f

CASE NUMBER: 49G02-1805-F5-014314 Zhenzhong Accounting U.S.A,

LLC which is

located at 112 Bowery,

FILED: 5/2/2018

New York, New

York

10013.

Teppanyaki Buffet, Inc. ’s 2015 federal tax return states that gross receipts (gross sales minus paid sales tax) was $805,396; however, the sales ledger book which is missing January’s data,

provides that actual taxable sales are $1 295,538.58. Thus, Teppanyaki Buffet, Inc. failed t0

report $490,142.58 in gross sales

income

its

federal

and

state

income

tax returns. This unreported

allocated to the shareholders of the sub-chapter S corporation and those shareholders

owe additional income

tax

on their share of the unreported income.

Jin Qiu Zhao owns ﬁfty percent (50%) of Teppanyaki Buffet, Inc,; therefore, Jin Qiu Zhao owes Indiana Income tax on $245,071 ($490,142.58 x 50%). The Indiana Income Tax rate is 3.4 percent. Jin Qiu Zhao owes $8,332 in Indiana Income Tax from the income not reported on the corporate income tax return of Teppanyaki Buffet Incorporated.

Dai Sheng Lian owns forty percent (40%) of Teppanyaki Buffet, Inc. As a forty percent (40%) owner of Teppanyaki Buffet Incorporated Dai Sheng Lian owes Indiana Income Tax on $196,056 ($490,142.58 x 40%). The Indiana Income Tax rate is 3.4 percent; therefore, Dai Sheng Lian owes $6,665 in Indiana Income Tax from the income not reported on the corporate income tax return 0f Teppanyaki Buffet Inc.

Qin Lian owns ten percent (10%) of Teppanyaki Buffet, Inc. As a ten percent (10%) owner of Teppanyaki Buffet, Inc., Qin Liang owes Indiana Income Tax 0n $49,014 ($490, 142.58 x 10%). The Indiana Income Tax rate is 3.4 percent; therefore Qin Lian owes $4,901 in Indiana Income Tax from the income not reported on the corporate income tax return of Teppanyaki Buffet, Inc.

The following Chan summarizes Rick Albrecht’s income

tax analysis:

Unreported

Owner

Share of

Income

Percentage

Income

Tax Rate

Owed

Qiu Zhao

$490,142.58

50%

$245,071.29

3.4%

$8,332.42

Dai Sheng Lian

$490,142.58

40%

$196,057.03

3.4%

$6,665.94

Qin Lian

$490,142.58

10%

$49,014.26

3.4%

$1,666.48

3810 S. Highway

41, Terre Haute, Indiana

Jin

Income Tax

47802

Hokkaido Japanese Buffet, Inc. is located at 3810 S. Highway 41, Tetra Haute, 1N 47802. Hokkaido Japanese Buffet, Inc. registered with IDOR in September 1, 2015 t0 begin collecting Indiana sales tax.

The Indiana Secretary 0f Incorporation on July 26, 2015.

State

shows Hokkaido Japanese

Rong Lin

is listed

Buffet, Inc. ﬁled

its articles of and Registered Agent. 2017 lists Ji Rong Lin as the

as the Incorporator

May l9, IDOR income tax records,

Indiana Secretary of State Business Equity Report ﬁled

president of Hokkaido Japanese Buffet Inc. According to

following are the owners of Hokkaido Japanese Buffet, Inc:

the

CASE NUMBER: 49G02-1805-F5-014314 Name Ji

Rong

Percentage of Ownership

30%

Lin

25%

Bao Jian Chen Jun Wei Zhang

10%

Shuiping Huang

25%

Nengduan

On October 24, President. Jun

2014, Jun

Wei Zhang was

On August 26, 2015, Rong Lin was

listed as the

FILED: 5/2/2018

10%

Lin

Wei Zhang

listed as the

signed the BT-l Sales Tax Application as

person responsible

Rong Lin signed

the

for

ﬁling tax forms.

BT-l Sales Tax Application as

President. Ji

person responsible for ﬁling tax formsA

Carole Bryant—Buchholz with the Indiana Department 0f Revenue completed a sales tax Hokkaido Japanese Buffet, Inc. Carole Bryant-Buchholz has been with IDOR for

analysis for

and is currently a senior revenue tax auditor. Carole Bryant-Buchholz has been doing criminal audits for twenty-ﬁve (25) years. Carole Bryant-Buchholz reviewed the records from the Hokkaido Japanese Buffet, 1110., 3810 S. Highway 41, Terra Haute, IN 47802, search waITant that was executed 0n August 11, 2016. The purpose for the search warrant was to thirty (30) years

determine the restaurants actual total sales through China King Feng, documents.

LLC own

intemal

The purpose of Carole Bryant-Buchholz’s sales tax analysis was to determine Hokkaido Japanese Buffet, Inc.’s actual sales through the restaurants own records. Carole Bryant-Buchholz could then determine if Hokkaido Japanese Buffet, Inc. had accurately reported sales tax to

IDOR by

to sales reported to IDOR through form ST-103. If actual sales IDOR then Hokkaido Japanese Buffet, Inc. failed to accurately report

comparing actual sales

exceed sales reported their actual sales t0

IDOR. Carole Bryant Buchholz could

then calculate sales tax not paid by

multiplying the difference of Actual Sales and Reported Sales by the tax rate and/or any food and

beverage

tax.

The records

available to Carole Bryant-Buchholz

was Hokkaido Japanese

composition book which contains a sales ledger for November

Buffet, Inc.’s

20 5 through August

9, 2016. Japanese Buffet Inc.’s daily business transactions. These daily transactions summarize the guest checks for the day, the cash paid out from the cash 1,

Two boxes that contained Hokkaido

amount of credit card transactions, and the amount of cash transactions The monthly sales from the cash register were also attached to some ofthe month’s

for the day. sales ledgers.

Additionally, Carole Bryant-Buchholz reviewed sales ledgers for September and October, 2015‘

The

sales ledger

columns which

summarizes

are:

Date

Credit Card Sales

Cash

sales

on a monthly

basis.

The sales ledger contains 5

CASE NUMBER: 49G02-1805-F5-014314

Cash Paid Out

TotalSales

was determined

that credit card sales,

which

FILED: 5/2/2018

included in total sales, included the seven (7) column ﬁve (5) “Total Sales”

percent Indiana Sales tax. Thus, sales tax had to be removed from so equal “Taxable Sales.”

Carole Bryant-Buchholz summarized Buffet Inc. failed accurately report

its

all

sales to

the data

and found

that

Hokkaido Japanese

IDOR. From September 2015

to July

2016,

Hokkaido Japanese Buffet, Inc.’s actual total sales were $887,572.37 and its actual total taxable sales were $829,506.90. For the same time period, Hokkaido Japanese Buffet, Inc. reported $509,789.97 in sales to IDOR. Thus, Hokkaido Japanese Buffet Inc. did not report $319,716.93 in sales to IDOR and Hokkaido Japanese Buffet Inc. owes $22,3 80.19 in sales tax to IDOR.

The following summarizes Carole Bryant Buchholz’s

sales tax analysis for

Hokkaido

Japanese Buffet, Inc. for 2015:

Taxable

Reported

Unreported

Tax Not

Total Sales

Less Taxes

Sales

Paid

September

$27,556.99

$1,802.79

$25,754.20

$17,653.54

($8,100.66)

($567.05)

October

$94,544.69

$6,185.17

$88,359.52

$54,418.11

($33,941.41)

($2,375.90)

November

$85,738.27

$5,609.05

$80,129.22

$49,279.53

($30,849.69)

($2,159.48)

December

$101,684.76

$6,652.27

$95,032.49

$56,222.26

($38,810.23)

($2,716.72)

Total:

$309,524.71

$20,249.28

$289,275.43

$177,573.44

($111,701.99)

($7,819.14)

The following summarizes Carole Bryant-Buchholz’s

sales tax analysis for

Hokkaido

Japanese Buffet, Inc. for 2016:

Taxable

Re p0 rted

Unreported

Total Sales

Less Tax

Sales

Safes

Tax Not Paid

January

$86,410.48

$5,653.02

$80,757.46

$51,262.80

($29,494.66)

($2,064.63)

February

$90,327.30

$5,909.26

$84,418.04

$51,462.49

($32,955.55)

($2,306.89)

March

$92,433.03

$6,047.02

$86,386.01

$53,575.04

($32,810.97)

($2,296.77)

April

$89,281.30

$5,840.83

$83,440.47

$51,929.93

($31,510.54)

($2,205.74)

May

$74,492.93

$4,873.37

$69,619.56

$43,315V48

($26,304.08)

1,841.29)

June

$70,411.09

$4,606.33

$65,804.76

$39,058.09

($26,746.67)

1,872.27)

July

$74,691.53

$4,886.36

$69,805.17

$41,612.70

($28,192.47)

($1,973.47)

$578,047.66

$37,816.19

$540,231.47

$332,216.53

($208,014.94)

($14,561.05)

Total:

2535

Main

Street Suite 108, Plainﬁeld,

[N 46168

China King Feng, LLC was a restaurant located at 2535 E. Main Street Suite 108, IN 46168. Ching King Fcng LLC registered with the Indiana Department 0f Revenue beginning September 1, 2015 t0 collect and remit Indiana Sales Tax. Ching King Fang, LLC Plainﬁeld,

closed this registration effective June 30, 201 7.

CASE NUMBER: 49G02-1805-F5-014314 On August Guang Feng

17, 2015,

was

Guan Feng

listed as the

Li signed the

FILED: 5/2/2018

BT-l Sales Tax Application

Member.

person responsible for ﬁling tax forms.

Indiana Department of Revenue tax records show that Guang F. Le was the sole owner 0f China King Feng LLC. Indiana Secretary of State records show China King Feng, LLC ﬁled Articles 0f Organization effective February 20, 2015.

Guang F. Li is listed as the registered Company were ﬁled with the Indiana dissolution of the Limited Liability Company

agent. Articles 0f Dissolution of a Limited Liability

Secretary of State authorizing and effectuating the effective July 31, 2017.

According to IDOR, there are two food and beverage taxes that apply to China King Feng, LLC: one (1) for the town of Plainﬁeld and one (1) for Hendricks County. China King Feng, LLC is located inside the town of Plainﬁeld and the county of Hendricks. The total food

and beverage tax

The

two

(2) percent as both entities

types of foods sold by China King

Feng

have a one

are subj ect to a

(1) percent

food and beverage tax.

Marion County’s food and beverage

tax.

Carol Bryant-Buchholz completed a sales tax analysis. The purpose 0f Carole BryantBuchholz’s sales tax analysis was to determine China King Feng, LLC’s actual sales through the restaurants

own

records. Carol Bryant-Buchholz reviewed monthly ledger sheets that

were

obtained in the August 11, 2016 search warrants from the restaurant located at 2535 E. Street Suite 108, Plainﬁeld,

Main

IN 46168.

China King Feng, LLC were for the time period from October 2015 through June 2016. Only the month 0f March 2016 was missing. A monthly ledger sheet is a document that summarizes sales and expenses 0n a monthly basis. The monthly ledger sheets for China King Feng, LLC include columns for the following information:

The monthly ledger

The

sheets for

Business (as in doing business)

Credit Card

Credit Card Tips

Wage

Daily Payment

Griddle Tips

Busboy

Miscellaneous

Leftover Cash

10.

Money

Collector's Signature

(columns 2 and 3) were veriﬁed through bank statement deposits and The daily payment column (5) was veriﬁed through various receipts included in the monthly envelopes as cash expenses which are commonly referred t0 as “cash paid outs” from the cash register. credit card information

credit card settlement statements.

CASE NUMBER: 49G02-1805-F5-014314

FILED: 5/2/2018

Carole Bryant-Bucholz summarized the the monthly ledger sheets and found that China

King Feng, LLC underreported its sales to IDOR for the months of October 201 5 through June 2016 (minus March 2016). Total sales for that time period were $688, 247.30, but China King Feng LLC reported $483,474.20. Thus, China King Feng LLC failed to report and pay sales tax on $184,773.10 in sales. China King Feng, LLC owes IDOR $12,934.12 in sales tax and $3,695.46 in food and beverage tax.

The following Chan summarizes Carole Bryant-Bucholz’s

analysis for 2015:

Reported

Unreported

Tax Not

Total Sales

Sales

Paid

Not Paid

October

$63,110.76

$46,430.88

($16,679.88)

($1,167.59)

($333.60)

November

$118,734.29

$86,721.58

($32,012.71)

($2,240.89)

($640.25)

December

$110,986.82

$77,535.43

($33,451.39)

($2,341.60)

($669.03)

Total:

$292,831.87

$210,687.89

($82,143.98)

($5,750.08)

($1,642.88)

The following

chart

summarizes Carole Bryant-Bucholz’s analysis

Food and Beverage Tax

for 2016:

Reported

Unreported

Tax Not

Food and Beverage

Total Sales

Sales

Paid

Tax Not Paid

January

$87,624.72

$64,151.64

($23,473.08)

($1,643.12)

($469.46)

February

$78,675.24

$56,820.85

($21,854.39)

($1,529.81)

($437.09)

April

$81,803.46

$59,388.76

($22,414.70)

($1,569.03)

($448.29)

May

$73,567.48

$53,743.31

($19,824.17)

($1,387.69)

($396.48)

June Total:

$53,744.53

$38,681.75

($15,062.78)

($1,054.39)

($301.26)

$375,415.43

$272,786.31

($102,629.12)

($7,184.04)

($2,052.58)

ALL EVENTS OCCURRED IN MARION COUNTY, STATE OF INDIANA. SWEAR (AFFIRM), UNDER THE PENALTIES OF PERJURY AS SPECIFIED BY IC 35-44-2-1, l

THAT THE FORGOING REPRESENTATIONS ARE TRUE

@5702 /7_a/sv DATE/D,

“WY

DEPUTY PR UTING NI E TH JUDICIAL DISTRICT

/ 4

371 AFFIANT/’ JUDGE

7‘

g323/