Husband and wife business owners in Macomb County were arraigned recently on charges for filing false tax returns and for the possession of an automated sales suppression device or “zapper.”
“Committing fraud against our state will not be tolerated and my office will continue to hold those who believe they are above the law accountable for their actions,” said state Attorney General Dana Nessel.
Ki Yon Ahn, 73, and Seo Jong Yoo, 62, were arraigned on the charges last month before Judge Stephen S. Sierawski of the 41A District Court in Macomb County.
The couple’s Sterling Heights business, Ki Wa Jip Inc. d/b/a Chung Ki Wa, has also been arraigned on the same charges.
A probable cause conference for Ki Yon Ahn and Seo Jong Yoon took place Aug. 3 before Judge Annemarie M. Lepore.
Future court dates have not been scheduled.
The couple, along with their business, are charged with:
• Six counts of filing a false sales tax return, a five-year felony.
• One count of possession of an automated sales suppression device, a five-year felony.
A “zapper” is software that retailers can use to manipulate their Point of Sale (POS) software database.
POS software is designed to record a merchant’s sales in some form of database program that can provide its user with accurate up-to-the minute sales and business and accounting information.
These internal records are usually difficult to alter by the retailer. However, with a zapper, Nessel said these databases can be manipulated or programmed in ways to suppress sales data, and thereby underreport a business’ tax liability.
After learning that Ki Wa Jip was likely in possession of an automated sales suppression device, the Department of Treasury analyzed the business’ reported sales and determined that Ki Wa Jip had allegedly been significantly underreporting its sales.
The analysis by the Department of Treasury ultimately determined that since 2013 the business owners allegedly failed to report or remit more than $165,000 in sales tax.
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