Michael Herman, Tax Fraud, Texas 2023

A Texas couple, Michael and Cynthia Herman, has been convicted of conspiracy and tax charges by a federal jury in Austin.

The Hermans, who owned and operated three establishments in Texas - Cindy's Gone Hog Wild, a restaurant and bar in Travis County, and two restaurants in Bastrop County, Cindy's Downtown and Hasler Brothers Steakhouse - were found guilty of conspiracy to defraud the United States by impeding the Internal Revenue Service (IRS) and of filing false individual income tax returns for tax years 2010 and 2011.

The jury also convicted Michael Herman of filing false 2010 through 2012 corporate income tax returns.

According to the evidence introduced at trial, the Hermans skimmed cash from the restaurants by depositing only a portion of the restaurants' cash receipts into their business bank accounts and reported only those deposits on the corporate and individual income tax returns.

The evidence at trial showed that the Hermans failed to deposit approximately $570,000 in cash receipts into their business bank accounts.

Michael Herman signed and filed the false 2010 through 2012 income tax returns filed on behalf of Cindy's Gone Hog Wild Inc.

U.S. District Court has not set a sentencing date, but the Hermans each face a statutory maximum sentence of five years in prison on the conspiracy charge and three years in prison on each of the false tax return charges.

They also face a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Richard E. Zuckerman thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Robert A. Kemins and David Zisserson, who are prosecuting the case.

Source: https://www.justice.gov/archives/opa/pr/texas-restaurant-owners-convicted-tax-fraud