Tax fraud committed by a prominent downtown business owner had Alcohol License Review Committee members questioning Wednesday whether she misrepresented her crimes to city officials.
After pleading guilty Aug. 21 to a charge of submitting a false purchase journal to an IRS agent, Jongyean Lee was sentenced to serve one year in federal prison and to pay a fine of $30,000.
Though her crime of fraudulent tax practices is a misdemeanor, and she will not begin to serve her sentence for another 20 months, ALRC members were concerned as to whether her past offenses could impact her business handling.
Lee came before ALRC looking to seek approval for an 18+ Center for Visual and Performing Arts License for her new establishment, Brickhouse BBQ, located at 408 W. Gorham St.
Committee member Ald. Michael Schumacher, District 18, noted that under the application section regarding previous convictions, a manager at Riley’s Wines of the World, owned in part by Lee, had written “N/A.”
Upon questioning by the committee as to its meaning, the manager had stated he was advised to do so by the city clerk.
“I don’t think the city clerk would have given that advice,” Assistant City Attorney Steven Brist said. “By not providing this information, the application is not only inaccurate, but incomplete.”
Lee and her husband, who is currently serving time for similar offenses, are also the owners of Badger Liquor, Churchkey, Samba, and Riley’s.,
Lee’s incarceration would begin 10 days after the release of her husband. At that point, further complications are expected regarding the numerous licenses in Lee’s name.
“I would like clarity as soon as possible. Mrs. Lee holds seven liquor licenses, many in my district,” committee member Ald. Mike Verveer, District 4, said. “I’ve been operating under the assumption that the conviction was not substantially related to the operation of her business.”
Verveer added he was concerned Lee had not been entirely truthful with her application.
Committee members Tom Landgraf and Schumacher said it is imperative the committee seeks guidance in determining whether her conviction is “substantially related” to the operation of her businesses. Awaiting such guidance, the committee referred its decision to a future meeting.
Another recent controversy surrounding the ALRC was left off of Wednesday’s agenda after members of the public and city officials expressed their displeasure with the proposed ordinance that has become known as “sober server.”
“We have an ordinance on the books now that says you cannot be drunk while working at an establishment that serves alcohol,” Katherine Plominski, Alcohol Policy Coordinator said. “The definition of drunk is 62 words long and the ordinance itself is 25 years old.”
Before it was determined that a revision was necessary, neither staff nor contracted employees would have been allowed to drink in the establishment, Verveer said.
“Frankly, I believe that the existing ordinance is just fine,” Verveer said. “If there’s any tweaking that needs to be done, it’s really in defining ‘under the influence.'”
