A company that operates two Subway restaurants in Lexington and other food outlets in Kentucky and Illinois has agreed to plead guilty to a charge that it tried to evade federal law in a financial transaction.
Rising Dough Inc. signed an agreement Thursday saying it would plead guilty to a charge that it structured currency transactions in such a way as to avoid a federal requirement that banks report transactions in excess of $10,000.
According the plea agreement filed in federal court Thursday, Rising Dough was accused of making a series of 14 deposits into an account at Fifth Third Bank between Nov. 28, 2011, and Aug. 12, 2012. The deposits totaled $122,028.00, documents say.
However, the individual deposits were always in amounts of $10,000 or less, according to the plea agreement.
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The deposits were payments that the company received from food sales and were made by various individuals, according to the agreement.
Federal authorities charged that Rising Dough Inc. made the deposits knowing that Fifth Third Bank was obligated under the U.S. Bank Secrecy Act to file a Currency Transaction Report with the federal government whenever more than $10,000 was deposited or withdrawn from an account.
"The purpose of the structured transaction was to evade that reporting requirement," the plea agreement states.
Rising Dough is a food service business that owns a Pretzel Twister franchise with locations in Kentucky and Illinois. It also operates two Subways in Lexington, through ownership interests in another family-owned operation called Fortune Dough Inc., according to information filed with the federal court.
The federal plea agreement identifies the family owners as Ta Shan Wang, Bi Chu Wang, Yao Chiang Wang and Teng Pin Wang.
Sentencing proceedings in the case are scheduled for Jan. 7 in U.S. District Court in Lexington.
The maximum statutory punishment in the case is a fine of not more than $1 million.
The government already has seized $106,220.20 from the Rising Dough's Fifth Third bank account, according to the plea agreement. Under the agreement, Rising Dough would withdraw its claim on that money.