Ex-Burger King Manager sent to jail to Defraud the IRS
180,000 in Cash
Cincinnati, Ohio, March 22, 2007
NRI Ashfaque Patel ,52, of Fairfield, Ohio was sentenced 18 months
jail and to pay over $50,400 compensation to the internal revenue
Federal prosecutors say Patel was one of several employees who
helped Angelo DeSimone steal the money from Greater Cincinnati Burger
He pleaded guilty to an indictment charging him with
conspiring to defraud the Internal Revenue Service (IRS). Between
1996 and 2000, Patel skimmed $180,000 in cash from the Burger King
restaurant that he managed and he impeded the IRS in its collection
of $50,400 in federal income taxes due on the skimmed receipts.
Patel was the final defendant to be prosecuted in this investigation.
A total of ten defendants were prosecuted during this investigation.
According to documents filed with the court and testimony, between
1996 and 2000, Ashfaque Patel managed a Burger King restaurant in
the local Cincinnati area. RAC, Inc. and/or Desili, Inc., (collectively
RAC) owned multiple Burger King restaurants, including the one managed
by Patel. Angelo DeSimone was the Managing Director of the Burger
King restaurants owned by RAC. During the years in question, DeSimone
oversaw seven or eight Burger King restaurants. Patel believed that
DeSimone was the owner of the restaurants.
DeSimone supervised the managers of the Burger King restaurants
directly or through William Scarborough, the Director of Operations.
DeSimone directed the managers, including Patel, to skim a set amount
of cash each week from the receipts of their respective Burger King
restaurants, and provide the skimmed cash to DeSimone. On a weekly
basis, either DeSimone, Scarborough, or a restaurant manager picked
up the skimmed cash, or the skimmed cash was transferred to DeSimone
by other means. Occasionally, DeSimone instructed the managers,
including Patel, to skim an amount of cash in addition to the set
weekly amount. To hide labor costs, some managers including Patel,
paid certain employees in cash. These cash wage payments were not
reported to the IRS.
During 1996 through 2000, Patel skimmed $100 per day, six days
per week from his restaurant. Patel and the other managers received
a kick-back of funds from DeSimone for skimming cash, or were allowed
to skim additional cash for their own benefit. Patel and the other
managers covered up the skimming of cash for DeSimone by not ringing
sales on the registers, voiding sales that had been rung on the
registers, altering monthly sales and inventory reports, and floating
deposits with the bank, and by other means.
During the years 1996 through 2000, Patel agreed with DeSimone
to carry out the skimming activity and reasonably foresaw that the
skimmed cash would not be reported to the IRS.
Cromwell A. Handy, Special Agent in Charge, IRS, Criminal Investigation,
stated, "Defrauding and impeding the IRS is not a victimless
crime. Honest, hardworking Americans pay the price when others choose
to evade their tax obligations."
DeSimone was sentenced to three years in prison in 2004 and ordered
to pay $370,000 in restitution. Other employees received sentences
ranging from probation to five months in prison.