Texas Restaurant Owners Indicted for Tax Fraud
Travis County
   
 
More Today's News:
ߦ   Illegal Immigrant Cop-Killer Says He Regrets Not Killing More Police
ߦ   Applications Being Accepted For Entry Level Police Officer - City of Santa Fe
ߦ   2 officers awarded for saving boy allegedly shot by father
ߦ   4 SC officers shot in domestic violence call, helicopter hit
ߦ   Alvin Police Dept - Weekly Offense/Arrest Bulletin
ߦ   Burnet County Sheriff's Office - Inmate/Arrests Summary
ߦ   Calif. teen leads deputies to parents' house of horrors
ߦ   Criminals exploiting new technology as tire thefts are on the rise
ߦ   Dennis Rodman charged with DUI in California
ߦ   Deputy's death underscores danger cops face when confronting mental illness
ߦ   DOJ, DHS Report: Three Out of Four Individuals Convicted of International Terrorism and Terrorism-Related Offenses were Foreign-Born
ߦ   Houston killer facing execution this week admitted to 2 more slayings in morbid hoax
ߦ   LPPD K9 traffic stop results in seizure of drugs and weapon in Drug Free Zone
ߦ   NC sheriff's deputy killed in domestic shooting
ߦ   Paris Police Dept - Daily Arrests/Activity Summary
ߦ   Pasadena City Auction - Jan 20, 2018
ߦ   Pearland Police Department Bulletin 01/08/2018 - 01/14/2018
ߦ   IN MEMORIAM Dale Allen Van Ness, Sr (Ret) Houston Police Dept
ߦ   Shooting In Dickinson Car Dealership
ߦ   Alexandria Vera, former middle school teacher impregnated by student, sentenced one year ago
ߦ   APD officers applying to Wilco Sheriff's Office amid contract fallout
ߦ   Area detention officers help deliver twins for inmate in labor
ߦ   Baytown pair to be charged with capital murder in 65-year-old's death
ߦ   Falsely Accused Man; Forever Murdered Woman
ߦ   Georgia Man Sentenced to 135 Months in Federal Prison for Distributing Methamphetamine
ߦ   Harris County hearing officers sanctioned by state for not considering personal bonds
ߦ   Larededoans Sent to Prison for Rollover Incident that Led to Death
ߦ   Moody Gardens Helps In Release Of 185 Cold-Stunned Green Sea Turtles
ߦ   Nacogdoches County Sheriff's Office, Texas Rangers investigating homicide
ߦ   Potential Flu-Related Deaths of Jail Inmates in Montgomery County
ߦ   Swatting suspect charged with manslaughter
ߦ   Three Men Sent to Prison in Cocaine Conspiracy
ߦ   Vehicles burglarized in Sienna Plantation
ߦ   Video vindicates officer after social media post accuses him of assaulting panhandler
ߦ   What Do Border Agents Think About Immigration Battle?

   Next >>
 
Search Archives:

Allegedly Underreported Gross Receipts and Deducted Personal Expenses

An indictment charging the owners of several Austin, Texas area restaurants with federal tax crimes was unsealed today, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

 

The indictment charges Michael Herman and his wife, Cynthia Herman, with conspiring to defraud the United States by impairing the legitimate functions of the Internal Revenue Service (IRS) and filing false individual income tax returns for tax years 2010 through 2012. Michael Herman is also charged with filing false corporate tax returns for 2010 through 2012.

 

According to the indictment, the Hermans owned Cindy’s Gone Hog Wild, a restaurant and bar in Travis County, Texas, which filed corporate tax returns, and two restaurants in Bastrop County, Texas, Cindy’s Downtown and Hasler Brothers Steakhouse, which reported their income and expenses on the Hermans’ personal tax returns. The indictment alleges that the Hermans deposited only a portion of the restaurants’ cash receipts into their business bank accounts and reported only those deposits to their tax return preparer. The Hermans also allegedly paid for personal expenses out of the business accounts, including repair of their swimming pool, utilities for their home and the salary of a household employee. The indictment charges that the Hermans filed false tax returns that underreported their income and falsely deducted personal expenses paid out of the corporate account as business expenses.

 

If convicted, the Hermans face a statutory maximum sentence of five years in prison on the conspiracy charge and three years in prison on each of the false return charges. They also face a period of supervised release, restitution and monetary penalties.

 

An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

 

Acting Deputy Assistant Attorney General Goldberg thanked agents of the IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Robert A. Kemins and David Zisserson, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Western District of Texas for their substantial assistance.

 

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

Topic(s): 
Tax
Component(s): 
Press Release Number: 
17-975
Post a comment
Name/Nickname:
(required)
Email Address: (must be a valid address)
(will not be published or shared)
Comments: (plain text only)
Printer Friendly Format  Printer Friendly Format    Send to a Friend  Send to a Friend    RSS Feed  RSS Feed
  Facebook   Share link on Twitter Tweet  
© 1999-2018 The Police News. All rights reserved.