Gary Cheung, Owner of Sam Woo, pleads guilty to multiple felonies, will pay nearly $3 million

SACRAMENTO – California Attorney General Xavier Becerra today announced the arraignment and plea of Gary Cheung for tax evasion and insurance fraud related to the Sam Woo restaurants he owned and operated in Los Angeles County. He pleaded guilty to multiple felonies for which he will be sentenced to prison and required to pay restitution in the amount of nearly $3 million.

“For his egregious crimes, Gary Cheung will pay nearly $3 million in restitution and face prison time,” said Attorney General Becerra. “Tax fraud hurts taxpayers and the state’s ability to provide vital public services to our communities. Moreover, insurance fraud leads to higher insurance premiums and may impact workers who are legitimately injured on the job. The California Department of Justice will enforce our laws and make sure those who cheat taxpayers, and those who engage in conduct that impacts an injured worker’s ability to receive benefits, will face the consequences.” 

Cheung ran a fraudulent tax and workers’ compensation insurance scheme from January 2012 to March 2019, in which he failed to report or underreported:

• Over $16 million in sales to the Department of Tax and Fee Administration;
• Over $14 million in taxable income to the Franchise Tax Board;
• Over $2.1 million in wages to the Employment Development Department; and
• Over $2.1 million in wages to insurance carriers;

Cheung also evaded payment of over $2 million in sales tax, income tax, and payroll tax; and over $549,000 in workers’ compensation insurance premiums.

Today, Cheung pleaded guilty to felonies including filing a false sales tax return in violation of the Revenue and Taxation Code, failure to pay payroll taxes in violation of the Unemployment Insurance Code, and filing a false income tax return in violation of the Revenue and Taxation Code. He also admitted to the white-collar enhancement.

The investigation into Cheung’s extensive fraud was done by members of the Tax Recovery in the Underground Economy (TRUE) Task Force. As a result of their investigation, Cheung will serve no less than three years in prison if he pays restitution or nine years and four months in prison if he fails to pay the full agreed upon amount of nearly $3 million. Cheung will be formally sentenced in August 2021.

The TRUE task force was created to ensure multi-agency collaboration and to combat wage theft, tax evasion, and other crimes in the underground economy. The task force consists of attorneys, investigators, and special agents from the Department of Justice, the Department of Tax and Fee Administration, the Franchise Tax Board, and the Employment Development Department.

Damflew Green Laser Pointer High Power Pen - Long Range Rechargeable Laser Beam, USB Charging for Hiking, Presentations & Outdoor Use (Professional-Grade Green Light)

(94)

$12.99 (as of April 30, 2025 17:23 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

80x100 Monocular-Telescope High Powered for Smartphone Monoculars for Adults High Definition Monocular Telescope for Stargazing Hunting Wildlife Bird Watching Travel Camping Hiking-Black

(2)

$39.99 (as of April 30, 2025 17:23 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

20x50 Binoculars for Adults, HD High Powered Professional Binoculars for Bird Watching Travel Stargazing Concerts Outdoor Sports-BAK4 Prism FMC Lens,Waterproof, Fogproof with Phone Adapter

(25)

$39.99 (as of April 30, 2025 17:23 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Amazon Fire TV Stick HD (newest model), free and live TV, Alexa Voice Remote, smart home controls, HD streaming

(13986)

$19.99 (as of April 30, 2025 06:26 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

MED PRIDE Non Latex Gloves Medium Disposable Non Sterile Powder Free Exam Gloves Vinyl Nitrile Blend Rubber Free Single Use for Nurses Medical 100 Count

(44814)

$8.67 (as of April 30, 2025 06:26 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Command 20 lb XL Heavyweight Picture Hanging Strips 16 Pairs (32 Command Strips), Damage Free Hanging Picture Hangers, Heavy Duty Wall Hanging Strips for Home Decor, White Adhesive Strips

(5518)

$11.99 (as of April 30, 2025 06:26 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Drift Car Air Freshener - Wood Air Freshener - Car Odor Eliminator - Teak Scent Starter Kit

(9204)

$12.95 (as of April 30, 2025 06:26 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

eos Shea Better Body Lotion- Vanilla Cashmere, 24-Hour Moisture Skin Care, Lightweight & Non-Greasy, Made with Natural Shea, Vegan, 16 fl oz

(37721)

$8.98 (as of April 30, 2025 06:26 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Clean Skin Club Clean Towels XL™, 100% USDA Biobased Face Towel, Disposable Face Towelette, Eczema Association Accepted, Makeup Remover Dry Wipes, Ultra Soft, 50 Ct, 1 Pack

(33472)

$17.95 (as of April 30, 2025 06:26 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Mini Monocular Telescope Focusing Optical Binoculars Waterproof and Non-Slip Monoculars for Adults, Black

(18)

(as of April 30, 2025 17:23 GMT -07:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)