Skip to main content

St. Louis Park restaurant owners accused in 'sophisticated' tax fraud scheme

They're accused of underpaying sales taxes by nearly $240,000.
raku sushi

The owners of a St. Louis Park sushi and hibachi restaurant are accused of orchestrating a "sophisticated" tax fraud scheme that cost the state more than $200,000 in sales tax revenue from 2016-2017.

Su Qian, 43, of Plymouth, and Xu Sheng Wang, 45, of Plymouth, as well as their restaurant, Raku Sushi and Lounge, are charged in Hennepin County District Court with 46 counts of tax fraud.

They're accused of underreporting their sales and basing their sales tax returns on the fake sales numbers, the Hennepin County Attorney's Office announced Thursday.

“We intend to prove that this was a highly sophisticated scheme that ran for many years which cost the state more than $200,000 in tax revenue,” Hennepin County Attorney Mike Freeman said in the release. “The revenue department’s investigators did an excellent job of conducting a long, difficult investigation and these crimes occurred prior to the pandemic during robust economic times.”

According to the criminal complaint, an audit by the Department of Revenue uncovered signs of sale suppression activity, so investigators in March 2018 began looking into Qian, Wang and their St. Louis Park restaurant, as well as their other restaurant in Edina.

Investigators found they used a sales suppression device to delete and alter their sales records and vastly under-reported their sales for most months from March 2016-May 2017, charges say. Under-reported sales totaled thousands of dollars most months, including $25,527 in May 2017.

In a 15-month span, the restaurants underpaid sales taxes by nearly $240,000, the complaint states.

“The use of sales suppression devices harms the vast majority of Minnesota restaurants that follow the law,” Revenue Commissioner Robert Doty said in the release. “Sales tax is a trust tax and when a restaurant breaks that trust, the department will take action to make sure Minnesotans can have confidence that the tax laws are being applied and enforced fairly for all businesses.”

Qian is charged with 16 counts of tax fraud and two counts of using an automated sales suppression device. Wang is charged with 14 counts of tax fraud. Raku Sushi and Lounge in St. Louis Park's West End is charged with 14 counts of failure to pay or collect sales taxes.

Qian and Wang are not in custody. They are scheduled to make their first court appearance at 1:30 p.m. on May 24. 

Next Up

Screen Shot 2022-01-27 at 9.15.45 PM

Buckeyes crash the glass, fend off Gophers

E.J. Liddell dominated in the paint to help No. 16 Ohio State.

nicolas blouin flickr fire hose

Fire departments decry drivers running over hoses, endangering crews

It happened in two separate Northland cities this week.

All Energy Solar - Bringing Panels to Roof

All Energy Solar reaches growth milestones with higher goals yet for 2022

Minnesota solar company continues to thrive through building a strong workforce

Royal Canadian Mounted Police maintoba crossing crop

Authorities ID family found frozen to death at MN-Canada border

They're still trying to unravel how they got there and who might have helped them.


Mayo Clinic specialist: 'The omicron surge is not over'

Experts expect a rapid decline over the next month followed a period of calm.

police lights

Charges: Man in stolen Jeep leads police on 110 mph chase

He crashed into a light post near the Capitol and then fled on foot, the complaint says.

kua dog go fund me

Puppy in back of stolen Audi found, reunited with owner

The 4 1/2-month-old bullmastiff had been missing more than a week.

Fuzzy Gerdes Flickr Franks Diner Kenosha

WI's best 'hole-in-the-wall' diner is Guy Fieri-approved

Come for the "garbage pile," stay for ... even more breakfast food.


Minnesota's pre-pro women's soccer team unveils name, logo

The new name and look was unveiled after community owners voted on a winner.

fentanyl DEA

21 people charged in connection to drug trafficking in northern MN

Police say the organization sold more than 10 pounds of heroin and fentanyl in northern Minnesota.

Band Box Diner Courtney Mault Flickr

MN's 'best hole-in-the-wall diner' is, sadly, currently closed

MSN recently published its pick for best diner in each state.


Burnsville restaurant owners are facing tax fraud charges

They allegedly used zappers software to avoid sales tax.


Shakopee restaurant owner charged with 58 tax crimes

The woman, from Savage, is accused of underreporting sales to avoid tax.

Twin Cities restaurateur charged with 38 counts of tax fraud

He evaded almost $120,000 in sales tax payments over a three-year period.

Restaurant owner confined to his home for a year over tax fraud

The St. Louis Park restaurateur pleaded guilty to dozens of charges.

Darbar India Grill & Bar

Owners of Darbar India Grill restaurants charged with tax crimes

Officials say the locations evaded paying more than $280K in sales tax.

Screen Shot 2020-03-06 at 10.31.25 AM

Drive-in restaurant reopens in St. Louis Park

The Galaxy Drive-In is now Clays Galaxy Drive-In.

for rent sign

Bayport man charged with 74 tax crimes in connection to vacation rental scam

He's accused of owing $194,961.43 in taxes and accused of stealing $17,960 from renters.

court gavel

8 people charged in Medicaid fraud scheme totaling $860K

Collectively, they're charged with 46 counts of felony theft.