Wilmington Restaurateur Pleads Guilty to Tax Fraud

Domenico Mazzella, the owner and operator of Mazzella’s Italian Restaurant in Wilmington, Del., has pleaded guilty in federal court to a brazen scheme of tax evasion that spanned from 2017 to 2020. The U.S. Attorney for the District of Delaware, Julianne E. Murray, announced the charges against Mazzella, who admitted to four counts of tax evasion and twelve counts of failure to collect, account for, and pay over trust fund taxes.

According to court documents, Mazzella systematically failed to pay required employment taxes by paying employees entirely in cash and hiding this payroll from his tax preparer. He also siphoned over $600,000 from the business’s bank accounts into his personal account, falsely labeling these transfers as business expenses. This deceitful accounting led to substantial underreporting of the restaurant’s income and Mazzella’s personal income on his tax returns.

Mazzella has agreed to pay restitution to the IRS in the amount of $549,370.39, a sum that will cover the evaded income taxes and employment taxes. He faces a maximum sentence of five years in prison for each of the 16 counts of conviction. The Court will determine his sentence after considering the U.S. Sentencing Guidelines and other federal law factors.

“Domenico Mazzella’s actions were a deliberate attempt to cheat the American public and gain an unfair advantage over law-abiding businesses and citizens,” stated U.S. Attorney Murray. “This plea demonstrates our office’s commitment to pursuing those who willfully evade their tax obligations.”

Yury Kruty, Special Agent in Charge of the Philadelphia Field Office for IRS-Criminal Investigation, echoed these sentiments: “This plea sends a strong message to honest taxpayers and underscores the IRS’s dedication to protecting the integrity of the U.S. tax administration system.”

The investigation into Mazzella was conducted by IRS-Criminal Investigation, with Assistant U.S. Attorney Bryan C. Williamson handling the prosecution. More information, including related court documents and case details, can be found on the websites of the U.S. Attorney’s Office for the District of Delaware and the District Court for the District of Delaware.