KESQ.com News Services

RIVERSIDE - An Orange County couple surrendered to authorities and both were arraigned Monday in Riverside County Superior Court on charges including workers' compensation insurance fraud and tax evasion.

Simon Sungheok Hong and his wife, Katie Kyanghee Shinn, both 42 and of Coto De Caza, each have been charged with 14 felony counts. The couple operated Maki Maki, California Japanese Cuisine with restaurants at the Irvine Spectrum and at The River at Rancho Mirage.

The investigation has revealed that Hong and Shinn knowingly underreported their payroll to their workers' compensation insurance carrier and the Employment Development Department as well as knowingly underreporting their sales tax revenue to the state Board of Equalization.

The total estimated loss to all agencies is $2.9 million without penalties and interest owed. With penalties and interest assessed, the total loss is estimated at $5.8million.

Last month, Hong and Shinn abruptly closed both restaurants without notifying the landlords or paying employees of the businesses. The couple also vacated their home in the affluent Coto De Caza community of South Orange County.

The defendants appeared before Judge Richard Fields on Nov. 16 and, as a part of their $75,000 bail agreement, were ordered to surrender their passports to their defense attorney by 4 p.m.