NY man indicted on tax fraud charges for scheme involving Boston restaurant
A New York man behind a Boston fried chicken restaurant is accused of filing fraudulent tax returns and neglecting to pay payroll and income taxes, according to the U.S. Attorney’s office.
Hazrat Khan, 56, of Middletown, New York, was indicted Thursday on charges of conspiracy to defraud the United States and 11 counts of willful failure to account and pay taxes, authorities said. He was indicted earlier this year on similar charges related to the operation of two other fried chicken restaurants in the area.
Khan, who operates New York Fried Chicken in Hyde Park, allegedly had the restaurant’s manager, a co-conspirator, conceal his ownership of the restaurant. He then supplied the IRS with a fraudulent number of employees and their paid wages, leaving out those who were undocumented workers, authorities said.
When paying employees under the table, he falsely listed the restaurant’s sales, income, compensation of officers, salaries, wages, and taxable income, according to the U.S. Attorney’s office.
A conspiracy conviction could land Khan with a sentence of up to five years in prison and a fine of $250,000.
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