Bouraxis family convicted of conspiring to defraud IRS in connection with their restaurants

FRANKLIN -- Officials with the United States Attorney's Office have announced the Bouraxis family has pleaded guilty -- accused of conspiring to defraud the IRS in connection with their operation of restaurants -- including Omega Burger, El Fuego and El Beso.

U.S. Attorney Gregory Haanstad on Wednesday, July 27th announced Paul Bouraxis, his wife Freida Bouraxis and their son, Andreas Bouraxis -- all of Franklin, pleaded guilty to conspiring to defraud the United States by impeding the Internal Revenue Service in connection with their operation of restaurants:

El Fuego

Paul Bouraxis also pleaded guilty to tax evasion in connection with his filing of his 2010 personal income tax return.

According to officials, as part of the conspiracy to defraud the United States, the Bouraxis family skimmed cash receipts from their restaurants, paid restaurant employees in cash without withholding payroll taxes, and failed to report much of the skimmed cash as income on their personal tax returns.

Between 2007 and 2010, officials say the family skimmed more than $3 million from their restaurants and underpaid federal income and payroll taxes by more than $1.3 million.

As part of the investigation, in September 2012, federal agents seized approximately $1.7 million in cash, as well as silver and gold bars, and jewelry from the Bouraxis' restaurants, home and safe deposit boxes maintained by the family.

El Beso

As part of their plea agreements, Bouraxis family has agreed to forfeit a total of $442,000 from the seized funds to the United States.

In addition, the defendants have agreed that the remaining seized cash and the proceeds from the sale of the silver, gold, and jewelry will be applied to their tax obligations.

As part of their plea agreements, it has been recommended that Paul Bouraxis be sentenced to two years in prison; that Andreas Bouraxis be sentenced to one year and one day in prison; and that Freida Bouraxis be sentenced to six months of home detention.

The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.