A high-profile tax scam involving a prominent pizza chain has landed two West Bloomfield residents in hot water. Arkan Summa, an owner of multiple Happy’s Pizza franchises, and his sister Tagrid Summa Bashi, a nominee owner, pleaded guilty to tax-related crimes in the U.S. District Court for the Eastern District of Michigan.
According to court documents, Summa orchestrated a scheme to evade taxes from approximately June 2004 through April 2011. He allegedly diverted gross receipts, underreported wages, and caused the taxable income and payroll tax information of specific Happy’s Pizza franchises to be underreported to the IRS.
The scheme resulted in a significant tax loss, with Summa’s obstruction of the IRS resulting in a loss of approximately $199,847. Bashi’s actions also led to a loss of approximately $55,000 in wages being underreported to the IRS. The false payroll information forms submitted by Bashi in 2009 were a key part of the scheme.
Summa faces a statutory maximum sentence of three years in prison and a fine of up to $250,000. Bashi faces a statutory maximum sentence of 12 months in prison and a fine of up to $100,000. Sentencing for both defendants is scheduled for October 23.
The investigation into the tax scam was led by the IRS – Criminal Investigation, the Drug Enforcement Administration, and the FBI. The case is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
The guilty pleas mark a significant victory for law enforcement and a reminder that tax evasion will not be tolerated. As the IRS continues to crack down on tax cheats, it’s clear that no one is above the law.
The case serves as a warning to businesses and individuals who attempt to cheat the system. The consequences of tax evasion can be severe, and those who engage in such activities will be held accountable.
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Key Facts
- State: Michigan
- Category: White Collar Crime|Fraud
- Source: DOJ Press Release ↗
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