SPRINGFIELD, Mo. – Tony E. Cowden, 63, of Protem, Mo., pleaded guilty in federal court to five counts of income tax evasion, admitting to evading $138,527 in taxes over five years.
Cowden, the owner of Tony’s Pizza House, operated the restaurant in Protem since April 2008. By pleading guilty, Cowden admitted to engaging in a scheme to conceal taxable income from the IRS from April 2008 to January 2015 by skimming from cash sales at the business and not reporting the cash income to the IRS.
Cowden listed his business and property for sale in 2015, and two undercover agents from IRS-Criminal Investigation posed as potential buyers and met with Cowden. During the meeting, Cowden apologized for not having provable income to substantiate the $599,000 sales price, stating, ‘it saves me a lot of taxes.’
Cowden admitted to the undercover agents that he ‘pockets’ all the money from the sale of Keno-Lotto tickets and the cash received from the arcade games in his restaurant. He maintained true and correct financials for the business in a black three-ring binder.
Cowden encouraged his customers to pay in cash by offering discounts for cash payments. He concealed the cash he skimmed from the restaurant from his accountant and so evaded paying federal income taxes on that revenue. By omitting a portion of his gross receipts, Cowden falsely claimed he was entitled to the earned income credit.
Under the terms of the plea agreement, Cowden must pay restitution to the IRS and to the state of Missouri. He must also pay $29,581 to the Social Security Administration for Social Security disability payments that he was not entitled to receive.
Cowden faces up to 25 years in federal prison without parole. The sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation, Social Security Administration – Office of Inspector General, and the Missouri Department of Revenue.
Key Facts
- State: Missouri
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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