Texas Restaurant Owners Indicted for Tax Fraud
Travis County
   
 
More Today's News:
ߦ   After Rioting for Police Body Cams, Liberals Now Say They’re Racist
ߦ   Arrest made in death of Texas police officer killed more 40 years ago
ߦ   Galveston County DA Announces 19th Annual 'Tree of Angels' Ceremony
ߦ   How culture of hazing, bullying in high school sports is only getting worse
ߦ   Judge Sets Date For Ex-Deputy And Her Husband's Murder Trial
ߦ   Three Jailed For League City Parking Lot Robbery
ߦ   Applications Being Accepted For Entry Level Police Officer - City of Santa Fe
ߦ   Angleton Man Sentenced for Multiple Child Pornography Charges
ߦ   Burnet County Sheriff's Office - Inmate/Arrests Summary
ߦ   Conroe Police Dept - Case Tracking Log
ߦ   Critical Missing Person - Roman Quiroz Jr.
ߦ   Detectives Seek Information Regarding Homicide
ߦ   Firearms Smugglers Sentenced
ߦ   Former Attorney and Others Sent to Prison for Money Laundering and Auto Loan Scheme
ߦ   Fourteen with ties to violent YNB Stretch Gang indicted for drug and firearm offenses
ߦ   Galveston County Commissioners Court - Meeting Agenda - Nov 20
ߦ   Jury Convicts & Sentences Man to 5 Years in Animal Cruelty Case
ߦ   Paris Police Dept - Daily Activity/Arrests Summary
ߦ   Sheriff's Chief Administrative Deputy Sentenced on Federal Corruption Charges
ߦ   A&E investigative crime series – THE ELEVEN – comes to a conclusion
ߦ   Baltimore detective shot in head; manhunt underway
ߦ   Burnet County Sheriff's Office - Inmate/Arrests Summary
ߦ   Child Advocates of Fort Bend and its Partner Agencies to Celebrate National Adoption Day, November 17
ߦ   Conservative Republican Mayes Middleton Calls to End Liberal Control in the Texas House and Elect a Conservative Republican Speaker
ߦ   Constable Deputies Arrest Suspected Child Predator
ߦ   Constable Mark Herman Receives 2 awards from North Harris County Residents
ߦ   Constables recover stolen vehicle minutes after it is reported
ߦ   Deputy Injured In Shooting Moved To Rehab Hospital
ߦ   Detectives Seek Information Regarding Homicide
ߦ   'F*** TRUMP' truck sticker photo goes viral; driver speaks with KPRC 2
ߦ   Federal Criminal Complaint Charges Two Men With Witness Tampering
ߦ   Galveston County Sheriff's Office - Daily Bulletin
ߦ   Good Food, Good Family Fun, and Great Competition at METRO Rodeo 2017
ߦ   Help Identify This Guy – Robbery Suspect
ߦ   Honduran Man Sentenced to Prison for Role in MS-13 Gang Initiatiation Murder in Virginia

   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  
© 1999-2017 The Police News. All rights reserved.