12/30/2006

Newsmakers 2006

China One Restaurant reopens

By CRAIG McCOOL

mccoolrecordeagle@sbcglobal.net

CHARLEVOIX — Sweet and sour chicken is back on the menu at the China One Restaurant.

The Charlevoix eatery had closed for several months following the former owner's arrest and conviction on tax fraud charges, but reopened this month.

It's now operated by a relative of the former owner, said Todd Wyett, properties manager for the strip mall where the restaurant is located.

"It's the same family. It's his brother or brother-in-law. Their lawyer called and asked if they could reinstate the lease,” Wyett said.

The China One in Charlevoix was one of four such restaurants targeted this summer in a Michigan State Police tax fraud probe.

The other restaurants are in Traverse City, Cheboygan and Gaylord.

Police suspected the owners of all four restaurants of not paying enough employee payroll tax because of illegal workers on the pay rolls.

Some of the owners are related and all use the same New York City accountant, according to police. A raid in July resulted in arrest warrants for respective owners of all four restaurants, although Charlevoix China One owners Yong Sheng Dong and his wife, Yu Zhen Chen, were the only ones initially arrested.

They were the first to be convicted and sentenced; owners of the other three eateries subsequently were convicted.

Cui M. Chen, owner of the Cheboygan restaurant; Wen Bing Wang, of the Traverse City restaurant; and Zhen X. Chen and Fa Yang, who run the Gaylord China One, are all expected in court Jan. 5 for sentencing on felony tax fraud charges.