Fraud Friday: Xiao Long Bao - Spidell

Fraud Friday: Xiao Long Bao


Brothers who own one of the two locations of Mama Lu’s Dumpling House in Monterey Park have been charged with underreporting sales by millions of dollars and underpaying sales and use tax, and the CDTFA is steamed. The Lu brothers face 17 counts, including conspiracy to file false sales tax returns, filing false sale tax returns, and filing false income tax returns. The second Monterey Park location is under separate ownership and is not being investigated. Still, you may want to pick up some xiao long bao before we have to say xiao long to one of these locations. (https://laist.com/latest/post/20210216/charges-mama-lus-dumpling-house-monterey-park-11-million-tax-sales-fraud-attorney-general)

CPAs, get four hours of fraud CPE with our 2020 Fundamentals of Fraud Prevention and Detection On-Demand WebinarClick here for more information.