United States Attorney Gregory J. Haanstad announced the filing of plea agreements that had been reached with Paul Bouraxis, his wife, Freida Bouraxis, and their son, Andreas Bouraxis, all of whom resided in Franklin, Wisconsin. Each of the defendants agreed to plead guilty to conspiring to defraud the United States by impeding the Internal Revenue Service in connection with their operation of restaurants in the Milwaukee area, including the Omega Burger restaurant, located on S. 27th Street in Franklin, the El Fuego restaurant located on W. Layton Avenue in Milwaukee, and the El Beso restaurant located on S. 74th Street, in Greenfield.
In addition, Paul Bouraxis agreed to plead guilty to tax evasion in connection with his filing of his 2010 personal income tax return.
As part of the conspiracy to defraud the United States, the defendants skimmed cash receipts from their restaurants, paid restaurant employees in cash without withholding payroll taxes, and failed to report much of the skimmed cash as income on their personal tax returns. During the years 2007 – 2010, the defendants skimmed more than $3 million from their restaurants and underpaid federal income and payroll taxes by more than $1.3 million.
As part of the investigation, in September 2012, federal agents seized approximately $1.7 million in cash, as well as silver and gold bars, and jewelry from the defendants’ restaurants, residence, and safe deposit boxes maintained by the defendants.
As part of their plea agreements, the defendants have agreed to forfeit a total of $442,000 from the seized funds to the United States. In addition, the defendants have agreed that the remaining seized cash and the proceeds from the sale of the silver, gold, and jewelry will be applied to their tax obligations.
As part of their plea agreements, the parties will jointly recommend that Paul Bouraxis be sentenced to 2 years in prison; that Andreas Bouraxis be sentenced to 1 year and 1 day in prison; and that Freida Bouraxis be sentenced to 6 months of home detention.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
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