California Attorney General Rob Bonta, along with the California Department of Tax and Fee Administration (CDTFA), announced securing a guilty plea against a Riverside County restaurant owner for defrauding the state of California of over $1 million through tax evasion. Over the course of three years, Eduardo Sanchez committed tax evasion by failing to report at least $9 million in taxable sales at his multiple restaurants, and pocketing sales taxes collected from customers. Sanchez pleaded guilty in Riverside County Superior Court to felony sales tax evasion. “Tax evasion is not a victimless crime — it hurts Californians by depriving the state of critical resources and services that families need,” said Attorney General Bonta. “Eduardo Sanchez purposefully evaded his obligations as a taxpayer and tried to skirt the law. I want to thank the California Department of Tax and Fee Administration, whose critical efforts were key to stopping his unlawful behavior. My office will continue to work with our law enforcement partners to identify and prosecute those who disregard the rule of law.” "Together with our partners in law enforcement, CDTFA is committed to taking aggressive action to combat tax evasion,” said California Department of Tax and Fee Administration Director Nick Maduros. “The more than $1 million recovered in restitution will help California continue to provide funds for vital programs and services."
The plea agreement was the result of an investigation conducted by CDTFA and prosecution by the California Department of Justice’s (DOJ) Special Prosecutions Section. The investigation found that from January 2015 to June 2020, Sanchez committed tax evasion, pocketing sales taxes collected from customers by failing to report at least $9.5 million in taxable sales. Sanchez is the owner and/or corporate officer of Dragon Sushi Inc., Sushi Tito Inc., franchises in Cathedral City, Indio, and Palm Desert. He also owns and operates an accounting business known as Mex-American Tax Service in Indio. As part of his plea, he will serve 180 days in the county jail with two years formal probation, and will pay back the full amount he defrauded the State of California, $1 million, in restitution.
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