PHOENIX (AZFamily) — The owner and two managers of an Arizona sushi chain have been arrested on federal charges of harboring illegal immigrants and operating what investigators describe as a human trafficking operation across the East Valley.

Court documents alleged Yung Lau, a naturalized U.S. citizen originally from China, along with two managers, including his brother, kept dozens of undocumented immigrants in four “stash houses” and forced them to work at restaurants seven days a week with no days off. The restaurants involved were Sakura Sushi in Gilbert, Mesa and Phoenix and Akita Sushi in Scottsdale.

Federal agents raided the four restaurants and four houses last week, ending an operation that neighbors said was reported to local police as early as 2023.

Neighbors reported suspicious activity for years

Brandy Forman, who lives next door to one of the houses in Tempe, said she knew something was wrong.

“They had a white van and it would leave at 9 a.m. and come back at 9 p.m.-ish. Right around dark with a van full of guys. They’d all walk in like this, looking down, no eye contact,” Forman said. “I was just super uncomfortable with just the amount of guys and how nervous they looked.”

Gary Gallagher, who lives across from another house in Mesa, described similar observations.

“They were very self-conscious; if you looked at them, they turned their back,” Gallagher said. “You would never see them outside.”

Court documents show neighbors called Tempe Police with concerns in 2023 and 2024. Tempe Police said their “patrol squad attempted to gain intel but were not able to establish any probable cause.”

Gilbert police were also alerted in May of last year. They told Arizona’s Family Investigates that what was reported “was not criminal activity” and there was “no mention of immigration.”

Federal investigation reveals operation details

Immigrations and Customs Enforcement began investigating in March, according to court documents. Undercover agents at the Phoenix restaurant noticed “Chinese employees directed tasks and work of the employees of Hispanic ethnicity,” and the Hispanic employees had “limited interactions” with customers.

A former ICE agent who reviewed the complaint said it was “bigger than your usual cases of worksite enforcement.”

Court documents show about 10 illegal immigrants stayed at the Tempe house, while others were housed at locations that helped run restaurants in Mesa. Workers were driven between the houses and restaurants daily in white vans.

Lau and Zhen Liu are both charged with harboring illegal aliens and knowingly employing unauthorized aliens.

Lau’s home was also raided during the operation. His attorney declined to comment on the charges.

Qin Liu, who is listed in court paperwork as being the brother of Lau, is charged with harboring illegal aliens.

Some of those illegal immigrants who were in the “stash houses,” are being held as material witnesses in the case. The three are slated to be in federal court for a hearing on Dec. 30.

Arizona’s Family Investigates has reached out to attorneys for Qin Liu and Zhen Liu for comment.

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