Feds: Restaurateur hid $2.6 million from the taxman

A Connecticut restaurant owner has admitted he committed tax evasion, keeping $2.65 million in business revenue hidden from tax officials.

Shelton-USDeptJusticeLogoAgostino Incorvaia, 47, of Danbury, waived his right to indictment and pleaded guilty to one count of tax evasion in Bridgeport federal court on April 14.

According to court documents and statements made in court, from 2007 to 2012, Incorvaia failed to report to the Internal Revenue Service approximately $2.65 million in gross receipts generated by Augie’s Numero #1, a restaurant he operates in Danbury.

 

Misled his accountant

During the investigation of the case, Incorvaia admitted to an undercover IRS agent that he understated the restaurant’s gross receipts on his income tax returns and provided false numbers to his accountant, that he had a large group of “off the books” employees, and that a portion of the unreported receipts supported his business interests and properties, including those in the Dominican Republic, federal prosecutors said.

Incorvaia’s admissions, which were recorded, were corroborated by the restaurant’s point-of-sale system that was seized pursuant to a search warrant, according to prosecutors.

 

Could go to jail for five years

In pleading guilty, Incorvaia admitted that he evaded payment of income taxes when filing his joint income tax returns for the 2007 through 2011 tax years.

When sentenced on July 7, Incorvaia faces a maximum term of five years in prison and a fine of up to $100,000. As part of his guilty plea, Incorvaia has agreed to pay $396,650 in back taxes, as well as interest and penalties. He will be sentenced by U.S. District Judge Victor A. Bolden.

This case was investigated by the Internal Revenue Service’s Criminal Investigation Division, and is being prosecuted by Asst. U.S. Attorney Hal Chen of the U.S. Attorney’s Office for Connecticut.

 

 

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