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Paycheck Withholding Violation

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A 44-year-old Rancho Palos Verdes man has been ordered to pay $37,000 in restitution after pleading no contest to failing to pay the state the money he withheld from his employees’ paychecks.

The case against Gene Kawakami, an owner of David Lee Printing in Hollywood, was one of four recently settled by the city attorney’s office involving worker exploitation, said Los Angeles City Atty. James K. Hahn.

Kawakami was ordered to pay the restitution after pleading no contest to one violation of the state Unemployment Insurance Code. The violation arose from his failure to pay the state Employment Development Department money he had withheld from employee paychecks for income taxes and unemployment and disability insurance in the first half of 1989.

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In addition to ordering the restitution, Los Angeles Municipal Court Commissioner John T. Rafferty also placed Kawakami on three years of unsupervised probation.

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