The operators of two small Asian restaurant chains in Tennessee have been charged with violating federal law by providing jobs and housing to immigrants who lacked the necessary documents to work legally in the United States.
Nine-count indictments were issued against four restaurateurs who operate eight units in mid-Tennessee. Three of the establishments bear the name Fuji Japanese Steakhouse, four operate as Bonfire Mongolian Grills, and one is flagged as the Koi Japanese Steakhouse.
The five individuals indicted by the U.S. Department of Justice (DOJ) are Tommy Zhuo, Alan Zhuo, Jason Zhuo and Lili Wu.
The charges leveled against them include harboring undocumented workers by providing them with a means of support; conspiracy to harbor those workers; and conspiracy to launder money.
Along with an associate, Joyce Zhuo, the four were also accused of trying to defraud the federal government by paying the undocumented workers off the books in cash and thereby failing to collect and pass along federal unemployment taxes.
Similar accusations are routinely leveled against restaurant employers. But the Tennessee office of DOJ went further in charging the four Tennessee operators for providing housing to undocumented hires. Lodging was allegedly provided in facilities owned or leased by the accused.
As employee recruitment has become more difficult for restaurateurs, some have tried to draw new hires by providing or subsidizing housing so the workers can afford to live in high-rent areas near the job.
DOJ is seeking forfeiture of the housing facilities. It says it’s also seeking “a money judgement representing the amount of the proceeds of the crimes.”
The criminal charges carry penalties of five to 20 years in prison.
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