James Perin and Mardeen Perin, Tax Evasion, IA 2016

West Des Moines bar owners James Perin, 66, and Mardeen Perin, 62, admitted to funneling unreported cash from Sully’s Pub into personal bank accounts, dodging federal taxes in a scheme that unraveled with their guilty pleas on December 5, 2016. The couple appeared before Chief U.S. Magistrate Judge Celeste F. Bremer, confessing to financial deceit that stripped the IRS of rightful revenue from their 2013 operations.

James Perin pleaded guilty to making and subscribing a false tax return, a felony under Title 26, United States Code, Section 7206(1). His wife, Mardeen Perin, admitted to aiding and assisting in the preparation of that false return, violating the same statute under subsection (2). Both charges stem from deliberate omissions of substantial cash income generated by the West Des Moines establishment.

The scheme relied on old-school cash manipulation—money earned at Sully’s Pub was siphoned directly into personal accounts, bypassing the business’s official books and escaping disclosure on both corporate and individual tax filings. Investigators found no attempt to conceal the deposits themselves, but the omission from tax documentation formed the core of the criminal case.

Now facing the consequences, the Perins could each serve up to three years in federal prison, followed by as many as three additional years under court supervision. Sentencing is scheduled for April 12, 2016, before Chief U.S. District Court Judge John A. Jarvey, who will weigh the depth of their deception and their cooperation in determining final penalties.

The Internal Revenue Service – Criminal Investigation led the probe, tracing the flow of unreported revenue through bank records and business operations. The case reflects a classic enforcement effort targeting small business owners who treat business cash like personal piggy banks—only the feds are watching.

Prosecution was handled by the United States Attorney’s Office for the Southern District of Iowa, underscoring federal resolve in cracking down on tax evasion, even when it’s buried in the receipts of a neighborhood bar. The Perins’ fall from barroom operators to convicted felons is a stark reminder: cash might be king, but the IRS keeps score.