Nessel Accuses Macomb County Couple Of Using 'Zapper'

MACOMB COUNTY, MI — A married couple who are business owners in Macomb County were recently accused by the Michigan Attorney General's office of filing false tax returns and for the possession of an automated sales suppression device or “zapper.”

The couple’s Sterling Heights business, Ki Wa Jip Inc. d/b/a Chung Ki Wa, has also been arraigned on the same charges.

“Committing fraud against our state will not be tolerated and my office will continue to hold those who believe they are above the law accountable for their actions,” Michigan Attorney General Dana Nessel said. “Individuals or business owners intentionally committing fraud do so out of personal greed and must face the consequences.”

Ki Yon Ahn, 73, and Seo Jong Yoo, 62, were arraigned July 21 before Macomb County District Court Judge Stephen S. Sierawski, the AG's office said. They, along with their business, are charged with:

• Six counts of filing a false sales tax return, a five-year felony;
• One count of possession of an automated sales suppression device, a five-year felony.

A “zapper” is software that retailers can use to manipulate their Point of Sale software database, according to the AG's office. POS software is designed to record a merchant’s sales in some form of database program that can provide its user with accurate up-to-the minute sales and business and accounting information.

These internal records are usually extremely difficult to alter by the retailer. However, with a zapper, the AG's office said, these databases can be manipulated or programmed in a variety of ways to suppress sales data, and thereby underreport a business’ tax liability.

After learning that Ki Wa Jip was likely in possession of an automated sales suppression device, the Department of Treasury analyzed the business’ reported sales and determined that Ki Wa Jip had been significantly underreporting its sales, according to the AG's office.

The analysis by the Department of Treasury ultimately determined that since 2013 the business owners failed to report or remit more than $165,000 in sales tax, according to the AG's office.

A probable cause conference for Ki Yon Ahn and Seo Jong Yoon took place Monday. Future court dates have not been scheduled.