GRAND RAIDS, MICH. - Michael Farah, 70, the owner of Farah's, Kuzzin's and Drake's in Grand Rapids, has been ordered to serve 18 months in federal prison for interfering with an Internal Revenue Service audit.
Michael Farah and his son Brian skimmed cash from their Grand Rapids-area bars in 2013 and 2014, which according to the United States Attorney's Office, did not get reported on their business or individual tax returns.
When Farah and his son were given notice of an audit in August of 2015, they tried to hide their tax fraud by destroying all of their point of sale records. They were caught when the company who maintained their business's computerized sales records provided the IRS with recordings of Farah's phone calls seeking help with deleting those records.
Michael Farah has already paid $126,703 in federal taxes that he owed for the cash he skimmed and $95,027.25 in penalties and interest. Farah's son Brian was previously sentenced to 13 months in federal prison for his role in the crime.
In addition to the 18 months prison term, Farah was also ordered to serve a year of supervised release, a fine of $5,000 and will pay restitution of $221,730.25.
“Michael Farah intentionally destroyed his records to avoid an IRS audit,” said IRS Criminal Investigation Special Agent in Charge Manny Muriel. “This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions.”
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