Simply Thai restaurant in Tukwila. COURTESY PHOTO, Simply Thai

Simply Thai restaurant in Tukwila. COURTESY PHOTO, Simply Thai

Tukwila restaurant owner gets 18-month prison sentence for tax fraud of nearly $1M

Simply Thai employees had Medicare, Social Security witheld but owner didn’t pay taxes to government

The owner of Simply Thai restaurant in Tukwila received a prison sentence of 18 months for tax fraud totaling more than $926,000.

Keovilayvanh Rinthalukay, 62, pleaded guilty in February 2023, admitting that between 2015 and 2019 he withheld Medicare, Social Security and federal income taxes from his employees’ paychecks, but instead of paying the taxes to the government, he pocketed the money for his own benefit, according to a May 2 U.S. Department of Justice news release.

At the sentencing hearing Tuesday, May 2 in U.S. District Court in Seattle, Judge James L. Robart said the amount withheld “is not a small number – it’s a lot of money. And the defendant didn’t find it necessary to pay his taxes for a number of years – it shows no respect for the law.”

Simply Thai is at 235 Strander Blvd., just south of Westfield Southcenter Mall. The restaurant remained open May 2.

“The failure to turn over payroll taxes is simply theft from employees who trust their employer to make those payments for their future well-being,” said U.S. Attorney Nick Brown. “In this case, Mr. Rinthalukay has committed to aggressively pay back more than $926,000 in tax debt. The prison sentence brings home the need to do right by workers and their future Social Security, Medicare and federal unemployment benefits.”

According to records filed in the case, between 2015 and 2019, the Tukwila restaurant employed dozens of people. Over that same period the restaurant failed to pay over the taxes withheld from paychecks, as well as the employer’s share of the payroll and federal unemployment taxes.

In all, Rinthalukay failed to pay at least $926,092. Instead, he used the money for his personal expenses including buying property, paying private school tuition for his children and buying a motorcycle, according to court records. Judge Robart noted at the hearing that Rinthalukay currently owns two homes in Western Washington that together are valued at well over $2 million.

As relevant conduct, the government noted that Rinthalukay has not paid his personal federal income taxes since 1998. The IRS is still reviewing that matter.

Prosecutors described Rinthalukay’s history of misconduct in their sentencing memo.

“Rinthalukay has a long history of disregard for his tax obligations, both personally and as a business owner. The criminal conduct here is not some momentary aberration but rather part of a decades-long pattern. And his conduct harmed not only the United States Treasury, but also the employees at his restaurant. Employees risk losing credit with the Social Security system when their payroll taxes are not turned over to the IRS,” Assistant U.S. Attorney Philip Kopczynski wrote in the sentencing memo.

“Restaurant employees deal with a lot: long hours, irate customers, and exhausting work. One thing they shouldn’t have to worry about – their employer stealing from them,” said Acting Special Agent in Charge Adam Jobes, IRS Criminal Investigation, Seattle Field Office. “Mr. Rinthalukay has owned and operated a restaurant for a long time and knows how important it is for his staff to provide good customer service. Today’s sentence is a strong reminder that business owners must play by their own rules and provide good service to their employees. Remitting tax withholdings and not stealing from their workers is a solid start.”

As of May 2, Rinthalukay has paid $550,000 of the taxes owed. The judgment imposed by Judge Robart will require prompt repayment of the remainder, including having Rinthalukay liquidate assets if needed.

The case was investigated by the Internal Revenue Service Criminal Investigation.


Talk to us

Please share your story tips by emailing editor@kentreporter.com.

To share your opinion for publication, submit a letter through our website https://www.kentreporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.

More in News

File Photo
Kent man, 21, killed in West Meeker Street parking lot shooting

Suspect fired five to 12 shots before fleeing; shooter and victim reportedly knew each other

Courtesy Photo, City of Kent
Kent City Council approves B&O tax increases to hire more police

Additional revenue will pay for four police department positions

t
King County executive will nominate replacements for Upthegrove

District 5, which includes parts of Kent, will get new representative on County Council in January

t
SeaTac man, 21, fatally shot in vehicle in Kent on West Hill

Someone ran up and fired multiple shots into vehicle Nov. 21 at Veterans Drive and Military Road

Kentwood High School, 25800 164th Ave. SE, in Covington, remained without power Thursday morning, Nov. 21, according to Puget Sound Energy. COURTESY PHOTO, Kent School District
Kent schools remain closed due to windstorm damage, power outages

Second consecutive day of closures Thursday, Nov. 21 across the Kent School District

t
Kent-based Puget Sound Fire calls windstorm ‘one for the ages’

Agency responds to 308 calls in 12-hour period, including 245 for storm-related issues

Crews clear trees from State Route 18, which the Washington State Patrol closed in both directions Wednesday, Nov. 20, from Issaquah Hobart to I-90 over Tiger Mountain because of fallen trees during a windstorm. COURTESY PHOTO, Washington State Patrol
Windstorm closes Kent schools, roads due to fallen trees

Many without power in areas of Kent and beyond

t
“Prolific” vehicular theft suspect arrested in Renton

Kent man holds 13 prior convictions and 41 arrests.

tt
Green Kent volunteer program wraps up season at city park

Volunteers remove invasive species, plant native trees and shrubs at Mill Creek Canyon Earthworks Park

t
Copper-wire thieves damage Kent Senior Center roof refrigeration unit

Facility temporarily loses commercial kitchen refrigerator but staff, community keep meals going

t
16-year-old girl dies in Covington single-car crash

Teen was driving when car crashed into a tree Nov. 15 along SE 256th Street just east of Kent