Owners of Metro East restaurant sentenced for tax fraud - KMOV.com

Owners of Metro East restaurant sentenced for tax fraud

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Credit: KMOV Credit: KMOV

Two Illinois business owners have been sentenced to four years probation each after trying to defraud the IRS.

Rodney Archer, 50, and Kenneth Archer, 52, are the owners of Lotawata Creek Inc, which does business as Lotawata Creek Southern Grill Southern Grill in Fairview Heights, Ill.

In April, the pair of men were convicted of their official charge of Conspiracy to Obstruct the Internal Revenue Service in the Assessment and Collection of Federal Income Taxes. 

From 2010 through July 2015, the men and their company altered and manipulated information in their restaurant's system to make it appear that the restaurant was reporting lower cash sales. They then removed the corresponding amount of cash from the business and reported it as gross receipts prior to deposit. 

In turn, these manipulations lowered the total gross of their receipts reported on their tax returns, which lowered the taxable income reported to the IRS. 

The Lotawata Inc was also sentenced, receiving a sentence of five years probation. 

The business and their owners were also ordered to pay direct restitution totaling $219,183.23, which was paid prior to the sentencing. Each defendant will also pay penalties and interests to the IRS, as well as unpaid taxes, penalties, and interest to the Illinois Department of Revenue. 

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