Local News

Wake pizzeria owners cut feds out of tax pie

Posted July 16

— A father and son who own Wake County pizzerias pleaded guilty Tuesday to filing false tax returns, authorities said.

Federal investigators said Thair Alwan and his son, Saill Fadhil, skimmed about $1.3 million in profits from their I Love NY Pizza shops in 2008 and 2009 and filed tax returns for the businesses that under-reported the actual income, resulting in "substantial tax underpayments."

According to court documents and statements made in court, I Love NY Pizza had two shops in Raleigh and one store location in Knightdale by 2008, and an Apex shop was added in 2009. Although employees stated that the business was at least 40 percent cash sales, cash deposits into the corporate bank account, as a percentage of total deposits, were 1.3 percent in 2008 and 2.3 percent in 2009, authorities said.

The skimmed money was used for personal expenditures or deposited into Alwan's or Fadhil's personal bank accounts, authorities said.

Investigators said that, between 2007 and 2010, Alwan made 73 currency deposits into his personal accounts. Of those, 50 were at least $9,000, and the majority of these were in the amount of $9,980. None of the deposits was more than $10,000, a level at which banks file a report with the Internal Revenue Service.

The father and son have agreed to pay restitution to the IRS. When they are sentenced, they face up to three years in prison and a $250,000 fine.

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  • SouthernBornSouthernBred Jul 17, 1:49 p.m.

    I never said I didn't think my daughter should pay taxes....especially since she works and pays them every week in her check. But to still owe taxes at the end of the year after paying for school, books, and health insurance out of pocket yes I think that is a rip off! Why should she work, pay taxes and pay her way along with the way of the dead beats and still owe at the end of the year. She files single 0 and they still want more from her!

  • Well I. D'Clare Jul 16, 3:37 p.m.

    Don't screw with the tax man.
    They got to have mine and your money to fund those who don't or... View More

    — Posted by earnyourownway

    -

    Who are you including in this judgmental statement?

    Many on government benefits are the elderly... View More

    — Posted by Well I. D'Clare

    No it's not hypocritical; your statements are hypocritical & logically flawed.

    So basically we... View More

    — Posted by davidhartman

    Hartman -

    "So basically we should subsidize everyone and everyone who for whatever reason isn't making 'sufficient' income?"

    Yes, because the wise know every single society known to man has needed those people to succeed, that success of a society isn't only won on the shoulders of the "comfortable" and "affluent".

  • Well I. D'Clare Jul 16, 3:34 p.m.

    DAVIDHARTMAN
    Thank-you, I could not have replied any better.

    — Posted by earnyourownway

    -

    Then you don't understand THE WHOLE PICTURE any more than he does.

  • Well I. D'Clare Jul 16, 3:33 p.m.

    Don't screw with the tax man.
    They got to have mine and your money to fund those who don't or... View More

    — Posted by earnyourownway

    -

    Who are you including in this judgmental statement?

    Many on government benefits are the elderly... View More

    — Posted by Well I. D'Clare

    No it's not hypocritical; your statements are hypocritical & logically flawed.

    So basically we... View More

    — Posted by davidhartman

    -

    What you always seem to miss in these comments is - the US is no longer the land of milk and honey!!!

    People use to be able to live on minimum wage. Unfortunately the cost of food alone has far outpaced any range a minimum wage job could provide. And other NECESSARY goods have done so too.

    And every society known to man has NEEDED these low-level workers. How quickly would the garbage bags grow deep at your house get were it not for the trash people who came to cart it away???

    We need to either stop criticizing minimum/low-pay employees, or we need to raise minimum wage to a fair level that one can actually live on.

    And for sure, we need to stop criticizing them WHILE we continue to patronize their employers because that's the highest level of hypocracy there is.

    Australia raised the minimum wage of this level of employee to $10 an hour, and saw very little increase in the cost of goods - because of market place competition.

  • Pepe Silvia Jul 16, 3:30 p.m.

    Kudos to them! I would do the same....I'm tired of working hard for my money and my taxes... View More

    — Posted by SouthernBornSouthernBred

    So... you don't like your taxes to support the 'dead beats' but you don't think its fair that your daughter pays taxes on her income?

  • Well I. D'Clare Jul 16, 3:27 p.m.

    Don't screw with the tax man.
    They got to have mine and your money to fund those who don't or... View More

    — Posted by earnyourownway

    -

    Who are you including in this judgmental statement?

    Many on government benefits are the elderly... View More

    — Posted by Well I. D'Clare

    No it's not hypocritical; your statements are hypocritical & logically flawed.

    So basically we... View More

    — Posted by davidhartman

    In the 1950's 1960's and 1970's, people could make a career from working on the sales floor of... View More

    — Posted by miseem

    -

    AMEN!!!
    Right on.
    I wish you'd run for office, you'd have my vote cause you understand THE WHOLE PICTURE!!!

  • miseem Jul 16, 3:17 p.m.

    Don't screw with the tax man.
    They got to have mine and your money to fund those who don't or... View More

    — Posted by earnyourownway

    -

    Who are you including in this judgmental statement?

    Many on government benefits are the elderly... View More

    — Posted by Well I. D'Clare

    No it's not hypocritical; your statements are hypocritical & logically flawed.

    So basically we... View More

    — Posted by davidhartman

    In the 1950's 1960's and 1970's, people could make a career from working on the sales floor of local department stores. That's no longer possible. People could work on the floor in textiles, furniture and numerous other manufacturing jobs and be firmly middle class. People could make a living as a cook or waitress. Can't do much of that now. This has been supplanted by self serve retail and fast food,minimum wage staff and bonuses for cutting more. And now, people are complaining because they have to pay sales tax on internet purchases. The American public is going to save themselves into a majority lower income workforce with poor roads, poor educational opportunities, and poor public services. All so that the few at the top don't have to pay that 7% tax for the $500 dollar handbag they purchased on line. But eventually, it will catch up with them too, and they just won't understand it. Explain the hypocrisy and flawed logic in that.

  • lost in translation Jul 16, 3:16 p.m.

    Not one comment about the most important item in this story. Did the Feds follow the money trail? Don't tell me millions were sitting in some savings bank or CD. Did they match the material items to the money skimmed? If not, where did the money go?

  • earnyourownway Jul 16, 2:45 p.m.

    DAVIDHARTMAN
    Thank-you, I could not have replied any better.

  • RunsWithWolves Jul 16, 2:41 p.m.

    Glad they got these tax cheats who were not paying their fair share!

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