The owners of the famed Tony Luke’s Philadelphia Cheesesteak were sentenced to prison for tax fraud Thursday after hiding more than $8 million over a decade.
The U.S. Department of Justice announced that the owners, Nicholas Lucidonio, 57, and Anthony Lucidonio Sr., 84, were each sentenced to 20 months in prison plus three years of supervised release.
The Lucidonios owned and operated Tony Lukes, which is a popular sandwich and cheesesteak shop in South Philadelphia.
Between 2006 and 2016, court documents show, the two men hid more than $8 million in cash receipts from the Internal Revenue Service (IRS) and deposited only a portion of the cash they received into restaurant business accounts.
By depositing only a portion of the cash, the DOJ said, the company’s accountant received incomplete information, which resulted in the accountant filing false tax returns.
Nicholas Lucidonio (left) and Anthony Lucidonio Sr. (right) hid more than $8 million in cash receipts from the Internal Revenue Service. Nick Luke Lucidonio / Facebook Two owners of Tony Luke’s in South Philadelphia were sentenced to 20 months behind bars for a tax fraud scheme in which they hid $8 million between 2006 and 2016. FOX 29 Philadelphia / Fox News
The Justice Department also said the Lucidonios were also convicted of employment tax fraud, which was committed when the two men paid employees “off the books” in cash.
Most employees were paid a portion of their salaries on the books to avoid discovery, and the rest of the salaries were paid in cash without things like federal income tax, federal income taxes, and taxes being paid to the IRS. Social Security and Medicare.
The Lucidonios failed to report cash wages to their accountant, the DOJ said, causing the accountant to prepare false quarterly employment tax returns to the IRS.
Nicholas Lucidonio and Anthony Lucidonio were also convicted of employment tax fraud, which was committed when the two men paid employees “off the books” in cash. Nick Lucas Lucidonio / Facebook
The problem became known in 2015, when the Lucidonios and another person had a dispute over Tony Luke’s franchise rights.
During the dispute, the Lucidonios were concerned that their tax fraud scheme would be exposed, so they amended the previous year’s tax returns to show higher reported sales, the DOJ said.
Still, the two men continued to hide their payroll tax scheme, resulting in a loss of $1,321,042 for the United States.
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Source: vtt.edu.vn