Riverside County Restaurant Owner Sentenced in Felony Sales Tax Evasion Case

Sacramento – A California Department of Tax and Fee Administration (CDTFA) tax evasion case in Riverside County has resulted in more than $1 million in restitution.

On March 29, 2023, Eduardo Sanchez, 57, of Indio, California, was remanded into custody to begin serving 180 days in the Riverside County jail. He also was sentenced to two years formal probation and 240 hours of community service. Sanchez pled guilty in November 2022 to one count of felony sales tax evasion. He has paid $1,018,265 in court-ordered restitution to CDTFA.

“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.”

“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.”

CDTFA's investigation found that from January 2015 through June 2020, Sanchez committed tax evasion, collecting taxes from customers and failing to report at least $9,519,120 in taxable sales. Sanchez was involved in the ownership and operation of Dragon Sushi Inc., Sushi Tito Inc., and Perfecto Pizza Inc. in Cathedral City, Indio, and Palm Desert, respectively.

This case was prosecuted by the California Department of Justice, Office of the Attorney General, working in partnership with CDTFA. In collaboration with local law enforcement, city and county licensing authorities, and other government agencies, CDTFA ensures businesses are registered, and collecting and remitting appropriate taxes and fees.

To report suspected tax fraud activity, call toll-free at 1-888-334-3300 or file an anonymous online complaint form with the investigations bureau at CDTFA.

The California Department of Tax and Fee Administration (CDTFA) administers California's sales and use, fuel, tobacco, alcohol, cannabis taxes, and various other taxes and fees that fund specific state programs. CDTFA-administered programs accounted for more than $94 billion last fiscal year, supporting essential local services such as transportation, public safety and health, libraries, schools, social services, and natural resource management programs through the distribution of tax dollars going directly to local communities.