Owner of Springfield Osaka Restaurant Indicted on Charges of Tax Evasion, Structuring

SPRINGFIELD, Ill. – A federal grand jury has returned an indictment that charges the owner of Springfield’s Osaka Japanese Restaurant, 1665 Wabash Ave., with filing false income tax returns and with structuring cash withdrawals to avoid detection by the Internal Revenue Service.  The indictment charges Chu Chuk Cheung, 40, with two counts of filing false income tax returns and 10 counts of structuring. 

The indictment alleges that for tax years 2012 and 2013, Cheung, the president and sole member of the board of directors, failed to report personal income he received from Osaka. The indictment alleges that Cheung failed to report personal income of approximately $376,976 for tax year 2012 and $145,958 for tax year 2013.

Cheung is also charged with structuring cash withdrawals from bank accounts under his control from Aug. 9, 2013 to Sept. 22, 2014, to evade Currency Transaction Reporting (CTR) requirements. Financial institutions are required to complete and file CTRs with the IRS for any currency transactions in excess of $10,000. To evade the CTR reporting requirement, Cheung allegedly obtained cash in amounts of less than $10,000, even when it meant withdrawing $9,000 one day and returning to the financial institution the next day to again withdraw $9,000 in cash.

The U.S. District Clerk of the Court will issue a summons for Cheung to make his initial appearance and arraignment on Aug. 29, 2018, before U.S. Magistrate Judge Tom Schanzle-Haskins.

If convicted, each count of filing a false income tax return carries a penalty of up to three years in prison, a $100,000 fine plus the costs of prosecution, and full restitution.  For each count of unlawful money structuring, the penalty is up to 10 years in prison. 

The charge is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Hilary W. Frooman.

Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.