Family Sentenced in $3M Tax Scheme – Bouraxis Clan Convicted

United States Attorney Gregory J. Haanstad announced the sentencing of Paul Bouraxis (67), his wife Freida (61), son Andreas (40), and son-in-law Reiad ‘Ray’ Awadallah (45) for a massive tax conspiracy. The defendants, accused of skimming over $3 million from Milwaukee restaurants they operated, have been convicted of conspiring to defraud the Internal Revenue Service (IRS).

Paul, Freida, and Andreas Bouraxis pleaded guilty to charges including failure to report substantial income on their personal income tax returns, paying employees under the table in cash, and evading federal payroll taxes. Their scheme resulted in an estimated $1.4 million in unreported and unpaid taxes. Paul Bouraxis also admitted to tax evasion, while Awadallah pleaded guilty for filing a false federal return.

The Bouraxis family was sentenced to pay $1.4 million in restitution, with funds seized from their businesses and safe deposit boxes to cover the amount. They also agreed to forfeit an additional $442,000 to settle a civil forfeiture action. Federal agents seized gold, silver, jewelry, and other items from their properties, which will be sold to pay off the tax evasion fines.

Paul Bouraxis was sentenced to two years in federal prison, Andreas to one year and one day. Freida Bouraxis and Awadallah were each given three years of probation, including six months of home confinement.

Shea Jones, Special Agent in Charge of IRS Criminal Investigation’s St. Paul Field Office, emphasized the impact of tax fraud on honest taxpayers: “Those who willfully cheat the tax system unfairly shift the tax burden to those who pay their fair share.” The investigation and prosecution were led by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation, with Assistant United States Attorney Matthew Jacobs handling the case.