Shu Ping Chen, a 48-year-old resident of Cheyenne, Wyoming, has been sentenced to 18 months in federal prison for filing a false tax return. The sentence was handed down by U.S. District Court Judge Alan B. Johnson on October 28 in Cheyenne.
In addition to the prison term, Chen was ordered to pay $293,270 in restitution to the Internal Revenue Service (IRS) and $66,426 to the State of Wyoming. She must also pay a $75,000 fine and contribute $35,000 toward prosecution costs.
Court documents show that Chen owned and managed China Buffet restaurant in Cheyenne and oversaw its daily operations and financial reporting. Beginning at least in 2018, Chen knowingly gave false financial information to her Certified Public Accountant (CPA), aware that this data would be used for preparing and filing her tax returns. Between 2018 and 2022, she intentionally underreported nearly $960,000 in gross cash receipts from the restaurant by providing incorrect figures to her CPA. This resulted in significant tax losses for both federal and state authorities.
The IRS-Criminal Investigation division executed search warrants at both the restaurant and Chen’s home on January 4, 2024. During these searches, Chen attempted to destroy business records.
After waiving indictment, Chen pleaded guilty on August 5 following the filing of an Information on July 11. The investigation was led by IRS-Criminal Investigation.
“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.”
