Orange County couple surrender in worker's comp fraud case

An Orange County couple has surrendered to authorities on charges including workers’ compensation insurance fraud and tax evasion.

Simon Sungheok Hong and his wife, Katie Kyanghee Shinn, both 42, from Coto De Caza, have been charged with 14 felony counts. The couple operated Maki Maki, California Japanese Cusine out of Irvine and Rancho Mirage.

The couple allegedly underreported their payroll to their workers’ compensation insurance carrier and the Employment Development Department, authorities said.

They also allegedly underreported their sales tax revenue to the state Board of Equalization, officials said.

The loss was alleged at $2.9 million - $5.8 million - with penalties and interest assessed, according to the Riverside County District Attorney's Office.

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

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.