Danbury Restaurant Owner Who Evaded Payment of Nearly $400K in Federal Income Taxes is Sentenced
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AGOSTINO INCORVAIA, 47, of Danbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation, the first six months of which INCORVAIA must serve in home confinement, for tax evasion. INCORVAIA also was ordered to pay a fine of $5,000 and more than $800,000 in back taxes, interest and penalties.
According to court documents and statements made in court, from 2007 to 2012, INCORVAIA failed to report to the Internal Revenue Service approximately $2.65 million in gross receipts generated by “Augie’s #1,” a restaurant he operates in Danbury.
During the investigation of this matter, INCORVAIA admitted to an undercover IRS agent that, for five years, he understated the restaurant’s gross receipts on his income tax returns and provided false numbers to his accountant, that he employed a large group of “off the books” workers, and that a portion of the unreported receipts supported his business interests and properties, including those in the Dominican Republic. INCORVAIA’s admissions, which were recorded, were corroborated by the restaurant’s “point of sale” system that was seized pursuant to a search warrant.
In 2012, INCORVAIA advertised his restaurant for sale with an asking price of $1.25 million.
On April 14, 2015, INCORVAIA pleaded guilty to one count of tax evasion and admitted that he evaded payment of income taxes when filing his joint income tax returns for the 2007 through 2011 tax years.
As part of his sentence, INCORVAIA is required to pay $396,650 in back taxes, as well approximately $427,000 in interest and penalties.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Hal Chen.