Famous Philly Cheesesteak Chain Has $8M in Tax Fraud?!

(VitalNews.org) – A famous Philly cheesesteak restaurant chain just recently was charged with tax fraud. The owners of the Philly cheesesteak chain called Tony Luke’s were sentenced to prison for tax fraud after being caught concealing about $8 million that was said to have accumulated over a decade.

Both Nicholas Lucidonio and Anthony Lucidonio Sr, 57 and 84 years old respectively, were sentenced to 20 months of prison time and three years of supervised release after the 20 months were completed. They both owned Tony Luke’s, which was located in South Philadelphia.

From 2006 to 2016, the two men hid over $8 million in cash receipts from the IRS. They were charged with tax fraud as they hid income and employee wages as well, which resulted in a huge loss for the United States.

Ultimately, they only deposited part of the cash and this made their accountant file false tax returns as they were provided with incomplete or inaccurate information. They also were convicted of employment tax fraud which they were charged for because they were paying employees cash “under the table.”

The way they accomplished this is they would give their employees some of their wages through the books, while the rest of their wages were paid in cash under the table so they wouldn’t have to pay anything out of it, including taxes, Social Security, or Medicare taxes. This information was presented to the accountant this way, which made the accountant file quarterly taxes that were inaccurate.

This all came to the surface in 2015 when the Lucidonias and another person got into an argument over franchising rights and the Lucidonios were concerned about their tax fraud situation being publicized. In turn, they decided to hide evidence of their payroll tax scheme. It’s said that the two men’s schemes cost over $1,300,000 to the United States.

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