The owner of a Wilmington restaurant enters a guilty plea in federal court for tax evasion and failure to pay employment taxes on behalf of cash-paid employees.
Domenico Mazzella pleaded guilty to a multi-year scheme to evade taxes according to U.S. Attorney for the District of Delaware Julianne Murray.
The owner and operator of Mazzella’s Italian Restaurant in North Wilmington pleaded guilty to four counts of tax evasion and 12 counts of failure to collect, account for and pay over trust fund taxes.
Court documents and statements in court show defrauded the Internal Revenue Service from at least 2017 through 2020.
Mazzella failed to pay the required employment taxes by paying a number of employees solely in cash and concealing the cash payroll from his tax preparer.
He also attempted to evade a substantial portion of his personal income by diverting over $600,000 from the business bank accounts to his personal account
“Domenico Mazzella’s actions were a deliberate attempt to cheat the American public and gain an unfair advantage over law-abiding businesses and citizens,” said Murray. “This plea demonstrates that our office, working with our law enforcement partners, will aggressively pursue those who willfully evade their tax obligations.”
Mazzella agreed to pay restitution to the IRS in the amount of over $549,000 which consists of evaded income and employment taxes.
He faces a maximum of five years in prison for each of the 16 counts.
