Sushi, doughnut
magnate faces tax
charges

Iong is charged with failing to
report more than $2 million

CORRECTION Friday, March 25, 2005 » Kenneth C.H. Iong is the franchisee for the Baskin-Robbins store on Kapahulu Avenue. There are several other Baskin-Robbins franchises in Waikiki that have no connection to Iong. An article on Page A8 in yesterday's early edition incorrectly said he ran the Baskin-Robbins operations in Waikiki. The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.

A federal grand jury has charged Dunkin' Donut Hawaii franchisee Kenneth C.H. Iong with filing false tax returns to avoid paying more than $243,000 in taxes over a three-year period.

Iong is accused of underreporting his income by more than $739,000 for the three years: 1997, 1998 and 1999. According to the grand jury indictment, he reported earnings of just $67,248 for the three years combined.

The 11-count indictment also accuses Iong of making false statements to various financial institutions through fictitious invoices to get funds to purchase or lease equipment and services.

Dorothy C.L. Yung of Honolulu is accused of assisting Iong in one of the false statements.

Iong is also charged with possessing a false passport. The false Costa Rican passport contained a photograph of Iong under a different name, according to the indictment.

If convicted, he faces a maximum five years in prison and $100,000 fine for each of the tax counts and 15 years and $500,000 for the fake passport.

Iong and Yung also face a maximum 30 years in prison and $1 million fine for each of the false-statement charges with which they are charged.

Iong could not be reached for comment.

He is the owner of ICH Group, which operates under the Sushi Chef name. In 1998 the company opened an 18,000-square-foot central kitchen to make food products for retailers, restaurants, airlines and others. He later opened four Catch of the Day Sushi restaurants. His company also ran the Baskin-Robbins ice cream operations in Waikiki.

Iong opened his first Dunkin' Donuts store in Pearl City in January 2001. There are now five Dunkin' Donut stores on Oahu.