Couple Sentenced for Conduct in Tax Fraud Scheme Involving Ogden Sports Bar and Grill
SALT LAKE CITY - Robert Watson, 54, and Marie Watson, 53, both of Pleasant View, Utah, were sentenced Wednesday in U.S. District Court in Salt Lake City for their role in a tax fraud scheme arising out of their operation of Teazers Sports Bar & Grill in Ogden, Utah.
Robert Watson, who pleaded guilty in September to two counts of filing false tax returns, including one corporate return and one personal return, was sentenced to six months incarceration, 12 months of supervised release, and 500 hours of community service. He was also ordered to pay restitution to the IRS in the amount of $39,629.
Marie Watson, who pleaded guilty to one count of filing a false personal tax return, was sentenced to 36 months of probation, and 200 hours of community service. She was ordered to pay $14,602 in restitution to the IRS.
U.S. District Judge Clark Waddoups imposed the sentences.
According to the indictment and other publicly filed documents, during the time the Watsons owned and operated Teazers, they failed to report substantial cash income on Teazers’ corporate returns and on their personal tax returns. Teazers generated large amounts of cash income from entrance fees known as “cover charges” charged at the door of the bar and from other items in the bar such as pool tables and video games. The Watsons deliberately hid this cash income from their tax preparer and caused tax returns to be filed with the IRS that understated their true income.
This case was investigated by the IRS-CI Las Vegas Field Office and was prosecuted by Assistant U.S. Attorney Jason R. Burt for the District of Utah.