Nevada Restaurant Owner Sentenced for Major Tax Evasion Scheme

The owner of three Casa Don Juan restaurants in Las Vegas, NV. has been sentenced to 37 months in prison for a significant tax evasion offense, causing a tax loss of approximately $1.6 million to the IRS.

Raul Gil, the restaurant owner, was found guilty of manipulating sales figures and evading federal income taxes from 2014 to 2018. According to court documents, Gil instructed his manager and internal bookkeeper to falsify sales records, underreporting cash sales by around $5.1 million. These tampered records were then provided to an accountant, who, unaware of the deceit, used them to prepare false business and personal income tax returns for Gil.

The scheme unraveled during an IRS audit in July 2018 when Gil directed his accountant to present profit and loss statements that corroborated the figures reported on the fraudulent tax returns. Additionally, he ordered his manager/bookkeeper to produce and submit false daily cash and sales reports to the IRS, purportedly generated from the restaurants’ point-of-sale systems. In subsequent interviews with IRS agents, Gil continued to assert the accuracy of these fabricated records.

U.S. District Judge Andrew P. Gordon, presiding over the case in the District of Nevada, sentenced Gil not only to prison time but also ordered three years of supervised release and restitution payments amounting to $2,228,943.65 to the United States.

This case, investigated by the IRS Criminal Investigation unit, was announced by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada. It was prosecuted by Trial Attorney Thomas Flynn of the Justice Department’s Tax Division and Assistant U.S. Attorney Tony Lopez for the District of Nevada.

For small business owners, this case serves as a stark reminder of the severe consequences of tax evasion and the importance of maintaining accurate and truthful financial records. It highlights the IRS’s commitment to uncovering and prosecuting financial fraud, ensuring the integrity of the tax system.

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This article, “Nevada Restaurant Owner Sentenced for Major Tax Evasion Scheme” was first published on Small Business Trends