James T. Jacks
Acting United States Attorney
Northern District of Texas

OWNER/OPERATOR OF CLUB EUROPA SENTENCED ON
FEDERAL TAX CONVICTION

DALLAS — Nehat Hidi was sentenced today by U.S. District Judge Reed C. O’Connor to 30 days in prison, 150 days of home confinement, and ordered to pay a $2000 fine and forfeit $250,000 following his guilty plea in September to one count of fraud and false statements in relation to an income tax return he filed, announced James T. Jacks, acting U.S. Attorney for the Northern District of Texas.

According to the factual resume filed in the case, Nehat Hidi and his wife owned Club Europa, a nightclub near downtown Dallas. The club had been open since 2004 and was operated by FN Witholdings, LLC. Around the time Club Europa opened, Hidi began depositing extraordinary amounts of currency from the club’s operation into his personal bank accounts. From July 2004 through June 2005, Hidi deposited at least $673,640 into five different bank accounts at two different banks. IRS-Criminal Investigation (CI) began an investigation and ultimately seized funds from him that were contained in numerous certificates of deposits.

Hidi filed his 2004 return prior to the above-referenced enforcement action against him and in that return, he declared that FN Witholding, LLC suffered a loss for tax year 2004, when in reality, it had operated at a substantial profit. On the return, Hidi understated gross receipts by several hundred thousand dollars. Hidi has filed an amended return for 2004 which properly shows that FN Witholdings, LLC was profitable. Hidi’s adjustable gross income increased by $235,393 and his taxable income increased by $124,876, resulting in a $27,004 tax liability to the IRS for tax year 2004.

As part of his plea agreement with the government Hidi agreed to pay $140,000 to the IRS, which consists of the total tax he has due and owing for 2005. As a further part of the plea agreement with the government, Hidi agreed to pay any state franchise, Texas Alcoholic Beverage Commission (TABC), and state sales tax due and owing for 20024 and 2005 for F & N Holdings, LLC, a/k/a Club Europa. Hidi agreed that the corporation’s TABC taxes due and owing for 2004 are more than $70,000 and that the corporation’s state sales taxes due and owing for 2004 and 2005 are more than $125,000.

Acting U.S. Attorney Jacks praised the investigative efforts of the IRS-CI. The case was prosecuted by Assistant U.S. Attorneys Chad Meacham and John de la Garza.

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