Related Federal Cases
- Tax Guy Chris’s $512K Pandemic Scam Lands Him 5+ Years · Michigan
- Tax Fraud Lands Detroit Gas Station Owner Behind Bars · Michigan
- Michigan Business Owner Charged with Tax Crimes · Michigan
- Wheeler Gets 17.5 Years for Tax Fraud Scheme · Alabama
- Ex-Tribal CFO Broton Back to Jail for Restitution Scam · Michigan
Restaurant Owner Charged in $1M Tax Scam
A Detroit-area restaurant owner has been indicted for allegedly failing to account for and pay over millions of dollars in employment taxes and income tax, the Grimy Times has learned.
Johni Semma, the owner of Bayside Sports Bar & Grill in Walled Lake, Michigan, is accused of withholding over $1 million in employment taxes from his employees between 2008 and 2015. Instead of paying the taxes to the Internal Revenue Service, Semma allegedly kept the funds for himself.
The indictment, returned by a federal grand jury in the Eastern District of Michigan, charges Semma with 24 counts of failing to pay over employment taxes and one count of willful failure to file an income tax return. If convicted, Semma faces a statutory maximum of five years in prison for each count of failure to pay over employment taxes and one year in prison for the income tax charge.
The indictment also alleges that Semma sold his adult entertainment business, The Coliseum, for over $6 million in 2012, but failed to file a 2012 income tax return despite receiving considerable income from the sale and other sources.
Principal Deputy Assistant Attorney General Richard E. Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Kenneth Vert and Brittney Campbell, who are prosecuting the case.
According to the indictment, Bayside Sports Bar & Grill accrued employment tax liabilities of over $1 million between 2008 and 2015, and Semma allegedly withheld those taxes from the pay of the restaurant’s employees. He then allegedly failed to fully pay over the amounts he withheld to the IRS.
An indictment is an accusation, and Semma is presumed innocent unless and until proven guilty. The case is a reminder of the importance of tax compliance and the consequences of failing to meet one’s tax obligations.
Key Facts
- State: Michigan
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime