The owners of the restaurants in Eatontown and Long Branch admitted to failing to pay taxes and harboring illegal aliens, according to a release from the U.S. Attorney's Office.
Brothers-in-law Mou Chor Tung, aka Kenny Tung, 44, of Colts Neck and Sin Ching Chang, aka Alton Chang, 35, of Long Branch, plead guilty to one count each of failing to collect, truthfully account for, and pay over payroll taxes to the IRS, today before U.S. District Judge Claire C. Cecchi in Newark federal court.
Tung also plead guilty to one count of harboring unlawful aliens he employed at his Sawa located at 42 Rte. 36, Eatontown.
Chang is the manager of the other Sawa located in Pier Village at 68 Ocean Ave., Long Branch.
From 2007-2010, Tung failed to collect from Sawa employees and pay approximately $263,523 in taxes. Chang failed to collect payroll taxes in 2007 from the employees of the Long Branch Sawa. He failed to pay over about $57,048 in taxes to the IRS.
According to the release, Tung also employed illegal aliens at the Eatontown location and provided several of them with social security numbers issued to other individuals. Tung reportedly purchased two properties in Long Branch where he housed his unlawful alien employees, and provided transportation for them in vehicles that are owned by the restaurant.
The tax charges Tung and Chang plead guilty to each carry a maximum potential penalty of five years in prison and a $10,000 fine.
The harboring charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
Tung and Change are schedule to be sentenced on Nov. 9