Lakeville couple charged with multiple tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Dakota County Attorney’s Office recently charged Linxiong Li and Wenzi Zeng, both of Lakeville, with four felony counts each of aiding or assisting in the filing of false or fraudulent sales tax returns. Mr. Li is also charged with four felony counts of willfully failing to pay sales tax.

According to the complaints, Mr. Li owns a restaurant in Lakeville, MN that he operates with his wife, Ms. Zeng. The complaints allege that the couple used their SUN POS system to suppress sales figures by removing items from checks or by altering the price of items after the transactions were complete. The complaints allege that from May 2016 to December 2019, the couple underreported over $231,000 in total sales made at the restaurant and reported these figures to their accountant who filed their monthly sales tax returns. Mr. Li allegedly owes over $27,900 in sales tax, penalties, and interest.

Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both. Defendants are presumed innocent unless and until proven guilty.

Although most taxpayers comply with tax laws voluntarily, the department takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.

Many of the department’s criminal case referrals come from public tips. There is a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Tips can also be submitted to the department by email at tax.fraud@state.mn.us. Tipsters may choose to remain anonymous. 

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