GRAND RAPIDS, Mich. — One of the owners of three Grand Rapids bars has admitted to skimming from his businesses so he wouldn’t have to pay as much in taxes.
Michael Farah pleaded guilty to a federal tax fraud charge. A second count fraud charge will be dismissed at sentencing.
Farah’s son, Brian Farah, previously confessed to his part in the crime, telling federal investigators how they stole the money from their three bars, Farah’s, Kuzzins and Drake’s.
Court records say that when the Farahs received a notice of a tax audit, they tried to hide income by deleting sales records. Federal authorities say they skimmed $232,000 from their business in 2013 and $176,000 in 2014. The sales then went unreported in their taxes.
According to Michigan Liquor License Commission records, their bars have so far not been affected by the federal case — though the conviction could jeopardize their liquor licenses.
Full story on WOODTV.com.