GRAND RAPIDS, Mich. (WOOD) — Both owners of three Grand Rapids bars who admitted to tax fraud will spend time behind bars, in addition to paying hundreds of thousands of dollars in restitution.
In a federal courtroom on Wednesday, 70-year-old Michael Farah was sentenced to 18 months in prison followed by a year of supervised release. He’ll also have to pay a $5,000 fine in addition to the $221,730.25 in restitution he already paid.
Authorities say Farah and his son, Brian Farah, tried to hide income from their three bars — Farah’s, Kuzzin’s and Drake’s — by deleting hundreds of thousands of dollars in sales records over two years. Those sales were never reported in their taxes, so they didn’t have to send as much money to the government.
Brian Farah pleaded guilty in December 2016 to interfering with tax law. In April, he was sentenced to 13 months in federal prison and ordered to pay a $5,000 fine and $15,846.25 in restitution.
The conviction could put their liquor licenses in jeopardy.
The father and son had proposed an expansion for Farah’s. The city planning director previously told 24 Hour News 8 that even if the Farahs lose their licenses, the project could still go through if a new owner takes it on.