RALEIGH: I Love New York Pizza owners plead guilty to tax fraud - WNCN: News, Weather

I Love New York Pizza owners plead guilty to tax fraud

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I Love NY Pizza on Hillsborough Street (hillsboroughstreet.org) I Love NY Pizza on Hillsborough Street (hillsboroughstreet.org)
RALEIGH, N.C. -

The owners of Raleigh-based I Love New York Pizza pleaded guilty Wednesday to tax fraud.

Thair Alwan and his son Saill Fadhil pleaded guilty to willfully filing false tax returns during the 2008 and 2009 tax years. They own two I Love NY Pizza restaurants in Raleigh, one in Knightdale and one in Apex.

The United States Department of Justice said Alwan and Fadhil skimmed almost all of the company's cash receipts -- estimated at $1.34 million -- from their four restaurants. DOJ said they filed false federal income tax returns, which failed to report the flow-through income and resulted in tax underpayments.

The DOJ said Alwan and Fadhil structured the transactions under $10,000 and avoided the filing of Currency Transaction Reports. Alwan made 73 deposits into their personal bank accounts in 2008 and 2009, 50 of which were at least $9,000 and the majority were $9,980.

Alwan and Fadhil have agreed to pay restitution to the IRS.

They each face a statutory maximum sentence of three years in prison, one year of supervised release and a maximum fine of $250,000 per count at their sentencings.

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