Federal raid allegedly uncovers undocumented workers at Metro Detroit steakhouses

ROYAL OAK, Mich. – The FBI is investigating the owner of three Kyoto Japanese Steakhouse restaurants, alleging he housed at least a dozen undocumented immigrants in “substandard” living conditions and had them transported to and from his restaurants to work illegally.

The details of the allegations are spelled out in an 11-page forfeiture filing that dropped on Wednesday in federal court.

According to the filing, Yong Ni, the owner of three restaurants — two in Shelby Township and one in Royal Oak — allegedly housed at least a dozen undocumented immigrants in his Shelby Township homes rent-free, in exchange for them working 12-hour shifts in his restaurants.

The FBI first encountered Ni in May 2024, executing a search warrant at his Shelby Township home. During the search, agents say they encountered a dozen people who all admitted to living there.

The filing says the government seized three vehicles connected with the scheme during a raid of the restaurants on May 1, 2025: a 2019 Toyota RAV 4, a 2020 Chevrolet Express Van, and a 2021 Honda Odyssey.

The feds also seized more than $14,000 in cash. The 12 undocumented immigrants who were living in the United States and working at the restaurants illegally were arrested during the raid.

Government surveillance also spotted multiple people being transported to and from the restaurants. Agents identified five people working there without authorization — three of them living in a different home owned by Ni, which they say he called dorms.

The employees were never told to fill out an application prior to working at the restaurants. The filing states that Ni would simply do an in-person “interview” and they would start working.

According to prosecutors, all had fraudulently obtained permanent resident cards and social security numbers for proof of identity and work authorization.

Ni told Local 4 that he has been blindsided by the investigation and insists that he has been misled.

“I was told they were legal,” Ni, who has yet to be formally charged, said on Thursday outside of the Royal Oak location. “I would never do anything illegal. I simply want to run my business.”