Cheyenne Restaurant Owner Gets Prison For Filing False Tax Return

The owner of the China Buffet Restaurant in Cheyenne has been sentenced to 18 months in federal prison for filing a false tax return.

That's according to a new release from U.S. Attorney for Wyoming Darin Smith.

Shu Ping Chen Will Also Have To Make Restitution and Pay Fines

According to the release, 48-year-old Shu Ping Chen was sentenced by U.S. District Court Judge Alan B. Johnson on October 28 in Cheyenne. Johnson also ordered Chen to pay $293, 270 to the IRS and another $66,426 to the State of Wyoming.

She also has to pay a$75,000 fine and $35,000 towards the cost of prosecuting her case.

According to paperwork in the case, Chen was responsible for financial reporting and day-to-day operations of the China Buffet.

Going back to at least 2018 Chen had given her Certified Public Accountant false financial information, known the incorrect numbers would be used by the CPA to prepare her tax returns. The release says for the period between 2018 and 2022, Chen had underreported China Buffet cash receipts by $959,693.94.

That under reporting caused the IRS to lose out on $293,270 and the State of Wyoming missed out on $66,426 in sales tax revenues.

The release says that on Jan.4 of last year The IRS executed a search warrant at both the China Buffet and Chen's home. While the warrant was being served, Chen was caught trying to destroy business records.

Chen pleaded guilty to the charges on August 5.

According to the release: “Tax fraud is a serious crime that undermines the integrity of our tax system and places an unfair burden on honest taxpayers,” said U.S. Attorney Darin Smith. “This sentence demonstrates the commitment of IRS-Criminal Investigation to holding individuals accountable for their actions and ensuring that everyone pays their fair share.”