Chuy's owners charged with immigration, tax violations (update)

Chuy's owners charged with immigration, tax violations

Posted: Apr 20, 2011 12:58 PM


TUCSON - The father and son owner's of the Chuy's chain and their accountant have been arrested and arraigned in federal court on tax and immigration violations.

According to a release from the Department of Homeland Security, Mark Evenson, 58, and his son Christopher Evenson, 39, are owners of Chuy's Mesquite Broilers, a regional chain with restaurants in Arizona and California. They have been charged, along with the company's accountant, 47-year-old Diane Strehlow, with a variety of criminal violations, including: unlawful hiring and harboring of illegal aliens, conspiracy to defraud the IRS and tax evasion.

"For nearly two years, these defendants are alleged to have knowingly dodged hundreds of thousands of dollars in taxes in order to maintain an illegal workforce," said U.S. Attorney Dennis K. Burke. "That deceitful practice, which hurts all law-abiding tax payers and employers, must stop. There should be no place in our economy for employers who cynically exploit and defy the U.S. tax code to take advantage of illegal labor."

According to the indictment, illegal workers were hired to work in the kitchens on the restaurants, while legal U.S. workers were hired as servers and other jobs. Allegedly, the company paid undocumented workers under the table while paying authorized workers through the normal payroll method.

"Employment tax evasion undermines public confidence in our tax system and businesses that don't follow the rules have an unfair advantage over their competitors. Tax evasion is not a victimless crime and results in the loss of future Social Security or Medicare benefits for the employees and loss of tax revenue to the United States government," stated Dawn Mertz, special agent in charge, IRS Criminal Investigation.

Court documents show that Mark Evenson allegedly directed employees not to run personal information for undocumented workers, telling them that the government would "kick it back" or would "come and pick them up."

After receiving a complaint about undocumented workers at a restaurant in Lake Havasu City, he allegedly told an employee that "throwing some American people in there," would stop the complaints.

The indictment further alleges that since at least 2008, the Evensons and Strehlow have been filing fraudulent tax forms, underreporting their taxes and failing to pay at least $400,000 in Federal Insurance Contribution Act (Social Security and Medicare) taxes.

The three defendants will be arraigned in federal court in Tucson tomorrow. If convicted, the Evensons could each face over 80 years in prison and over $5 million in fines. Strehlow faces a maximum sentence of 40 years and a $2 million fine.

http://www1.kvoa.com/news/chuy-s-owners ... iolations/

Phoenix and California stores included

Feds raid Tucson Chuy's restaurants in illegal hiring probe
Brady McCombs, Arizona Daily Star | Posted: Wednesday, April 20, 2011 11:56 am

Federal agents arrested the father-son owners of Chuy's Mesquite Broiler restaurant chain on Wednesday for hiring illegal immigrants and paying them under the table.

Agents from Immigration and Customs Enforcement and Internal Revenue Service agents were at the four Chuy's locations in Tucson Wednesday morning serving search warrants. Other agents were at Chuy's locations in Phoenix and California.

The owners of Chuy's - Mark Evenson, 58, of Paradise Valley, Ariz., and his son, Christopher Evenson, 39, of Oro Valley - were arrested along with the company's accountant, Diane Strehlow, 47, of Tempe, according to a news release from Immigration and Customs Enforcement.

The trio is being charged with a variety of criminal violations, including unlawful hiring and harboring of illegal immigrants, conspiracy to defraud the Internal Revenue Service, and tax evasion.

If convicted, Mark Evenson could face up to 86 years in prison and a $5.3 million fine. His son, Christopher Evenson, could face up to 81 years in prison and a $5 million fine. The accountant, Strehlow, could face up to 40 years and a $2 million fine. The three will be arraigned in federal court in Tucson on Thursday, the release says.

The Chuy's on East 22nd Street at South Kolb Road has a separate franchise owner. Owner J. Brian Latta said he wants everyone to know his Chuy’s is not involved in the investigation. He came to Arizona from California with Mark Evenson to start the chain but the business associates when separate directions in 2003.

“I hope it doesn’t hurt my business,â€

Hmmmm! Wonder who would have known and tipped off the proper
authorities. I love the IRS angle... Great bust. :D
I love good news. :D

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Originally Posted by airdale

Hmmmm! Wonder who would have known and tipped off the proper
authorities. I love the IRS angle... Great bust. :D
I love good news. :D

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I agree. Forget about calling ICE, just call the IRS. Seems to be working. :D

This story is getting huge locally. I'm sure the "activists" are going balistic that they also arrested 40 illegal aliens.

I now want to see them file state charges on these dudes too. Remember that AZ passed all kinds of laws that make these state violations too.

I can believe the Maricopa Co atty general will, but Pima Co's will go out of her way not to.

Father-son owners, accountant paid them in cash, indictment says
Feds: 3 execs of Chuy's hired crossers illegally

Brady McCombs Arizona Daily Star Arizona Daily Star | Posted: Thursday, April 21, 2011 12:00 am


Federal agents arrested the father-son owners of 15 Chuy's Mesquite Broiler restaurants in Arizona and California on Wednesday on allegations they were knowingly hiring illegal immigrants and paying them under the table.

Mark Evenson, 58, of Paradise Valley, and his son, Christopher Evenson, 39, of Oro Valley, were arrested along with the company's accountant, Diane Strehlow, 47, of Tempe.

They face a variety of criminal charges including unlawful hiring and harboring of illegal immigrants, conspiracy to defraud the Internal Revenue Service and tax evasion, said Vincent Picard, Immigration and Customs Enforcement spokesman.

Agents from Immigration and Customs Enforcement and the Internal Revenue Service served search warrants at four Chuy's in Tucson, seven in Phoenix and four in California, said Rick Crocker, ICE deputy special agent in charge in Tucson. Search warrants were also presented at two houses in Tucson and three houses in Phoenix.

The arrests are the culmination of a two-year investigation that began with an anonymous tip that Chuy's was hiring illegal immigrants, Crocker said. The Evensons hired illegal immigrants to work in the kitchens of 15 Chuy's restaurants in Arizona and California, paying them off the books to avoid paying taxes, he said.

Agents also arrested 40 illegal immigrants they encountered Wednesday at Chuy's locations in Arizona and California, including 18 in Tucson, Picard said. They are facing administrative immigration charges. But they weren't the focus of the investigation, Crocker said.

"Our goal is not just to round up illegal aliens," Crocker said. "What we want to do is target the employers. We are trying to send a message that we are not going to tolerate this."

If convicted, Mark Evenson could face up to 86 years in prison and a $5.3 million fine. His son could face up to 81 years in prison and a $5 million fine. The accountant, Strehlow, could face up to 40 years and a $2 million fine. The three will be arraigned today in federal court in Tucson.

The company paid the illegal-immigrant workers by check and did not report their earnings in the quarterly federal tax returns, the indictment shows. The company has failed to pay at least $400,000 in Federal Insurance Contribution Act (Social Security and Medicare) taxes since January 2008, the indictment shows.

"That provides an unfair commercial advantage for Chuy's," Crocker said.

The Evensons hired legal workers to be servers and perform other front-of-the-restaurant jobs and paid them through regular payroll practices. The illegal workers were hired for the kitchen, the indictment says.

Crocker said investigators are confident they've gathered sufficient evidence to prove in court that the Evensons "knowingly" hired the illegal-immigrant workers. That's a requirement of federal law for an employer to be found guilty.

In November 2010, Mark Evenson instructed an employee preparing payroll that the restaurant did "cash" for the back help, the indictment says. "If those Social Security numbers get in the state, they'll come pick them up," Mark Evenson said.

After receiving a complaint about illegal workers at a Lake Havasu City Chuy's in September 2010, Mark Evenson told an employee, "If we throw some American people in there, maybe that'll just shut (them) up," the indictment says. He told the employee, who he believed was an illegal immigrant, "I just need to get you off the oh, show floor. I need to hide you in the kitchen."

When an employee told Christopher Evenson in August 2010 that a person he wanted to hire who was working at another restaurant had "no papers," Christopher Evenson told the employee that the other restaurant did "the same thing," the indictment says.

Dating to 2008, the Evensons hired about 360 illegal immigrants to work at the 11 Chuy's in Arizona, the indictment alleges. The younger Evenson, Christopher, was primarily responsible for the Chuy's locations in Tucson, the indictment says..

The restaurants

The Chuy's locations in Tucson run by the Evensons are located at:

• 3100 E. Speedway.

• 7585 S. Houghton Rd.

• 4499 W. Ina Rd.

• 6310 Tanque Verde Rd.

Different Owner

The Chuy's on East 22nd Street at South Kolb Road has a separate franchise owner and was not involved in the investigation, said owner J. Brian Latta.

Latta came to Arizona from California with Mark Evenson to start the chain but the business associates parted ways in 2003. "I hope it doesn't hurt my business," Latta said.

Did You Know

In May 2010, Chris and Mark Evenson agreed to pay $40,000 to settle a federal copyright lawsuit stemming from songs being played without permission.

Contact reporter Brady McCombs at 573-4213 or bmccombs@azstarnet.com

http://azstarnet.com/news/local/crime/a ... 2fb69.html

I wonder how many took advantage of free social services while sending money home.

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Originally Posted by Newmexican

I wonder how many took advantage of free social services while sending money home.

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im willing to bet all of em did

"Search warrants were also presented at two houses in Tucson and three houses in Phoenix."

I believe this had to do with he harboring part. They put the employees up in houses they owned too.

http://www.kgun9.com/

under main headlines. a poll asking if Chuy's business license should be suspended

KGUN 9 POLL
Should the Pima County Attorney's Office punish the Chuy's restaurant that were raided by suspending their business licenses?

Thank you for participating in our poll. Here are the results so far:

Yes 83%
No17%
Undecided0%

Should the Pima County Attorney's Office punish the Chuy's restaurant that were raided by suspending their business licenses?

Thank you for participating in our poll. Here are the results so far:
Yes

86%
No

14%
Undecided

0%

Here's some more updates. Pima County Atty Barbara LaWall told KGUN she will not be prosecuting the Chuy's people on state charges. (as predicted)

We need to put pressure on State Atty General Tom Horne to prosecute on State charges. He's a good guy and should listed if this gets a lot of attention.

Also, all three of the main defendants were released without bond after their court appearances yesterday. The judge didn't believe they are a flight risk. However she did take their passports and said they had to get the court's permission to travel out of Arizona which is pretty standard.

I thought these guys might be flight risks, but they do have their restaurants back open and operating now.

Added an article from above to the Homepage:
http://www.alipac.us/article-6251--0-0.html

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Agents also arrested 40 illegal immigrants they encountered Wednesday at Chuy's locations in Arizona and California, including 18 in Tucson, Picard said. They are facing administrative immigration charges. But they weren't the focus of the investigation, Crocker said.

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Watch,this is what they will be concerned with

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conspiracy to defraud the Internal Revenue Service and tax evasion

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They will set the illegals free to work again as they continually do.

It is ok to take jobs from the working American youths but you better pay TAXES!

Quote:

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Watch,this is what they will be concerned with
[quote:242rpr09]conspiracy to defraud the Internal Revenue Service and tax evasion

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They will set the illegals free to work again as they continually do.

It is ok to take jobs from the working American youths but you better pay TAXES![/quote:242rpr09]

No its not okay for illegals to take the jobs of american kids or adults at anytime, or anywhere

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Originally Posted by OneNationUnderGod

Quote:

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Originally Posted by airdale

Hmmmm! Wonder who would have known and tipped off the proper
authorities. I love the IRS angle... Great bust. :D
I love good news. :D

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I agree. Forget about calling ICE, just call the IRS. Seems to be working. :D

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:lol:

uniteasone wrote:

Quote:

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Watch,this is what they will be concerned with
[quote:3ibm04zy]Quote:
conspiracy to defraud the Internal Revenue Service and tax evasion

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[/quote:3ibm04zy]

Oh, think of the REVENUE for the IRS to redistribute to the illegals through public assistance.

There will be back taxes and PENALTIES that will be calculated back to, I can't imagine when. $$$$$

Of course the lawyers will get their big chunk defending them to the IRS to keep them out of jail for tax evasion $$$$$$

Meanwhile, the illegals go down the road to next joint and go to work so the IRS can bust and get into the knickers of that employer also. This could turn into a good deal for the American taxpayer if the government didn't spend every dime on some new reparation or welfare program.

I wonder if the illegals are turning them in themselves for the Catch a tax Cheat bounty that the IRS pays for tips?

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Whistleblower - Informant Award
The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects.
http://www.irs.gov/compliance/article/0 ... 71,00.html

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The Government NEEDS more REVENUE!!

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Does Congress want the IRS to catch tax cheats?
This article is by Stephen Ohlemacher of The Associated Press.

Every dollar the Internal Revenue Service spends for audits, liens and seizing property from tax cheats brings in more than $10, a rate of return so good the Obama administration wants to boost the agency's budget.

House Republicans, seeing the heavy hand of a too-big government, beg to differ. They've already voted to cut the IRS budget by $600 million this year and want bigger cuts in 2012.

The IRS has dramatically increased its pursuit of tax cheats in the past decade: Audits are up, property liens are up and asset seizures are way up. President Barack Obama and Democrats in Congress see stepped up enforcement as a good way to narrow the nation's staggering budget deficit without raising tax rates or cutting popular spending programs.

"It makes little sense to cut the agency that collects revenue," said Rep. Jose Serrano of New York, the top Democrat on the House subcommittee that oversees the IRS budget.
Article continues below
http://money.msn.com/tax-tips/post.aspx ... 503a046234

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WORKING FOR CASH ONLY ???

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IRS mining mortgage and UBS data to find tax cheats
By Lita Epstein
Posted 10:00AM 09/01/09
UBS (UBS) data won't be the only data used to find tax cheats. Thanks to a report by the Treasury Inspector General for Tax Administration (TIGTA), called "Mortgage Interest Data Could Be Used to Pursue More Nonfilers and Underreporters," the IRS plans to start looking at how it can use Form 1098 mortgage interest statements to catch tax dodgers.

TIGTA auditors found that many people pay significant levels of mortgage interest, yet they are not filing tax returns or filing returns indicating that their income is not sufficient to cover their mortgage obligations and basic living expenses. The report recommended that the IRS explore the possibility of making greater use of data from mortgage interest statements to pursue tax evaders.
"Information reporting is a key component in IRS compliance programs that are designed to detect and pursue noncompliant taxpayers who underreport income, overstate deductions or fail to file tax returns," said TIGTA Inspector General J. Russell George in a statement. "Individuals who fail to file required returns and/or underreport their income create unfair burdens on honest taxpayers and diminish the public's respect for the tax system."
See full article from DailyFinance: http://www.dailyfinance.com/2009/09/01/ ... ax-cheats/

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Obama: Boost IRS, catch cheats 3Share .Email.more
More about taxes
BLOOMBERG
Published: February 14, 2011 6:11 p.m.
Last modified: February 14, 2011 6:11 p.m.
WASHINGTON – President Barack Obama proposed increasing the budget for the Internal Revenue Service by 9.4 percent to hire more than 5,000 new employees, most of whom would pursue tax cheats.

The president’s fiscal 2012 budget released today sets funding for the tax-collection agency at $13.3 billion, an increase of $1.1 billion from 2010, the last time a full appropriation was made for the IRS.

Almost half of the increase, or $460 million, would support the agency’s tax-enforcement programs. Under the plan, the IRS would focus on fighting tax evasion through the use of offshore accounts and cheating by corporate and high-wealth taxpayers.
http://www.metro.us/newyork/national/ar ... tch-cheats

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KEEP HIRING THEM, FOOLS!!!!!

HOW MUCH MONEY DID YOU REALLY MAKE RUNNING ILLEGALS?

Chuy's executives make first court appearance
Posted: Apr 22, 2011 1:40 PM CDT
Updated: Apr 22, 2011 1:40 PM CDT

CaliforniaReporter: Sergio Avila
Web Producer: Layla Tang

TUCSON (KGUN9-TV) - On Thursday, the grills were still cold at most Chuy's restaurant locations across the city, as the father-son owners made their first appearance in court. On Wednesday, federal agents arrested Mark and Christopher Evenson and company accountant, Diane Strehlow, for hiring undocumented workers and paying them under the table.

During the hearing Thursday, a judge released the three Chuy's executives from jail on a promise that they would appear in court. The U.S. Deputy District Attorney in the case had no objections to that ruling, and only asked that the three surrender their passports and agree not to travel outside the state of Arizona without permission.

The defendants are facing several counts of knowingly hiring illegal immigrants, as well as tax fraud. The feds alleged that the Evenson's avoided paying $400,000 in taxes by paying those undocumented workers in cash. If convicted, they face millions of dollars in fines, and decades behind bars. In the courtroom, some current and former Chuy's employees served as character witnesses.

Christopher Evenson fought back tears as his family looked on. Attorney Walter Nash said the family's ordeal has already become quite emotional.

"They're upset. They're emotional. They'll bounce back in the next couple of days and get on about their business of living their lives and defending their case," Nash said.

Family members respectfully declined to comment to KGUN9 News as they left the courthouse. The three defendants will be arraigned on Monday, April 25. It's still unknown whether they will face state charges as well. Attorney General Tom Horne said he hasn't received any information from the Pima County attorney.

The company that owns the Chuy's Mesquite Broiler franchise name released this statement:

"Chuy's Mesquite Broiler Restaurants are owned by a number of individuals, not just Mark and Chris Evenson. While we are deeply disturbed by the alleged actions, they do not represent the values and ideals of the Chuy's Mesquite Broiler restaurants."

http://www.kgun9.com/story/14498387/chu ... ected=true

Very good video coverage at
Video from KGUN on Chuys

http://www.kgun9.com/category/172043/video?
clipId=5782717&topVideoCatNo=139344&autoStart=true &redirected=true

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Originally Posted by jamesw62

Quote:

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Watch,this is what they will be concerned with
[quote:78zoxx8x]conspiracy to defraud the Internal Revenue Service and tax evasion

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They will set the illegals free to work again as they continually do.

It is ok to take jobs from the working American youths but you better pay TAXES!

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No its not okay for illegals to take the jobs of american kids or adults at anytime, or anywhere[/quote:78zoxx8x]

You may have taken my comment wrong. I did not mean it as it is ok in the eyes of the public, but in the eyes of our politicians and corporations it appears to be,since they keep protecting the illegals.

3 hours 34 minutes ago
kvoa.com

TUCSON - The former owner of Chuy's has plead guilty to hiring undocuments immigrants and conspiracy to impede the function of the IRS.

Christopher Evenson and his father, Mark, both owned Chuy's restuarants in California and Arizona. Mark was found mentally imcompentent to stand trial so the indictment against him was dismissed.

Back in April 2012, federal agents raided 15 Chuys stores after a two year investigation.

Christopher Evenson will be sentenced in U.S. District in Tucson in July.

http://www.kvoa.com/news/former-chuy...ed-immigrants/

Posted: Apr 11, 2014 5:52 PM PST Updated: Apr 11, 2014 6:01 PM PST
By Christopher Francis
http://kold.images.worldnow.com/images/25228686_BG2.JPG

TUCSON, AZ (Tucson News Now) -

One of the owners of four Chuy's restaurants in Tucson has pleaded guilty to two federal counts in connection with the hiring of illegal immigrants.

Christopher Evenson of Oro Valley entered pleas on conspiracy to defraud the IRS and hiring illegal immigrants. He faces up to six months in prison when he's sentenced in July.

Evenson, his father Mark, and their accountant Diane Strehlow were all charged back in 2011, after authorities raided their 11 Chuy's restaurants in Phoenix and Tucson. Prosecutors say they paid illegal immigrants under the table to work in the kitchen in order to avoid taxes.

The case against Mark was dismissed after he was fount not competent to stand trial.

In 2012, Strehlow pleaded guilty to one count of trying to defraud the IRS. She was sentenced to one year probation.

http://www.tucsonnewsnow.com/story/2...nt-hiring-case

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Originally Posted by mapwife

"Search warrants were also presented at two houses in Tucson and three houses in Phoenix."

I believe this had to do with the harboring part. They put the employees up in houses they owned too.

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And now, if this bust follows the usual pattern, when Chuy's advertises for workers, Americans will be showing up to do those jobs that the illegals lobby claims that they won't do.
***********************************
Americans first in this magnificent country

American jobs for American workers

Fair trade, not free trade

BY LINDA BENTLEY | APRIL 16, 2014

Former Chuy’s owner enters plea deal

Evenson continued a method of operation previously established by his father, specifically, the practice of hiring and employing illegal aliens

http://www.sonorannews.com/archives/...herEvenson.jpg

PHOENIX – Christopher Mark Evenson (r), former owner of Chuy’s Mesquite Broiler restaurants in Phoenix and Tucson, entered into a plea agreement on Friday, April 11, pleading guilty to counts 1 and 18 of a 20-count superseding indictment, which charged him with conspiracy to impede and impair the function of the Internal Revenue Service and engaging in a pattern and practice of hiring illegal aliens.

The superseding indictment also included a forfeiture allegation for any property used or intended to be used to facilitate the commission of the offense.

Pending charges against his father Mark Harold Evenson were dismissed in January without prejudice after the government received two mental health evaluations, which both indicated he was mentally incompetent to stand trial, and stated attempting to restore his competency was not a viable option.

The Evensons were indicted by a federal grand jury in April 2011, with a superseding indictment filed on Oct. 12, 2012.

The indictment asserted the Evensons hired illegal aliens, or non-citizens without authorization to work in the United States, to work in the kitchens of their restaurants, while they hired legal workers for servers and other more prominent restaurant positions.

The Evensons used different methods for paying the illegal aliens and the legal workers.

For the legal workers, summary sheets containing total hours worked during the pay period were provided to CompuPay, where appropriate deductions for tax withholding, FICA and Medicare taxes were made in preparing the payroll checks.

For the illegal alien workers, the summary sheets reflected the employees’ names, hours worked and their hourly rate of pay.

Each store manager calculated the amount of an employee’s paycheck by multiplying the number of hours by the hourly rate. The store manager then wrote checks for the illegal workers without deducting any payroll taxes.

According to Evenson’s plea agreement, beginning in April 2008 and ending around January 31, 2009, there was an agreement between two or more persons to “defraud the United States for the purpose of impeding, obstructing and defeating, by deceitful and unlawful means, the lawful government functions of the Internal Revenue Service, in the ascertainment, computation, assessment, and collection of Federal Insurance Contribution Act (FICA) taxes.”

Evenson also engaged in a pattern and practice of hiring illegal aliens for employment that he knew were not authorized to work in the United States.

The maximum penalties for count 1 include a fine of up to $250,000, a maximum term of five years in prison, or both, and a term of up to three years of supervised release.

The maximum penalties for the offense in count 18 are a fine of up to $3,000 for each illegal alien and a maximum term of 6 months imprisonment, or both.

Evenson and the government stipulated and agreed to a sentencing range of 0-6 months, with the government agreeing not to make a sentencing recommendation.

The plea agreement asserts that Mark Evenson, Evenson’s father, was the major decision maker in the various corporate entities that operated the Chuy’s restaurants in Arizona. Evenson was the area manager for the Tucson restaurants, in charge of the day-to-day restaurant operations.

Evenson continued a method of operation previously established by his father, specifically, the practice of hiring and employing illegal aliens.

From January 2008 to December 2010, Evenson knowingly, regularly and repeatedly caused such individuals to be hired. In December 2009, approximately 30 illegal aliens were employed in the Tucson Chuy’s restaurants.

The illegal aliens were paid the same hourly wages as the legal workers.

However the managers of the Chuy’s restaurants in both Phoenix and Tucson continued the method of preparing bi-weekly payroll summary sheets, as established by Mark Evenson, whereas there were two categories of employees: 1) employees whose paychecks would be prepared with proper income tax and FICA withholding, and 2) employees who were paid handwritten checks generally prepared by the managers at each restaurant without any required withholding tax deducted from their pay.

Evenson signed some of those handwritten checks.

The quarterly payroll returns prepared by CompuPay were based on the payroll information submitted to them, which did not include payroll information for the illegal workers.

Because payroll information for the illegal alien employees was not supplied to CompuPay, those wages were not included in the quarterly returns filed between April 30, 2008 and January 31, 2009.

Therefore, the returns for those periods falsely reported the amount of wages paid to employees of the restaurants and falsely reported the amount of FICA taxes paid by the restaurant on behalf of those employees.

The amount of unreported and unpaid FICA taxes for 2008 and 2009 totaled $94,591 for the restaurants managed by Evenson.

U.S. Magistrate Judge Bernardo Velasco in Tucson, where Evenson submitted his plea, recommended the U.S. District Court accept Evenson’s plea and set the timelines for submitting the presentence report.

Sentencing is set for July 14 before Senior Judge David Bury.

http://www.sonorannews.com/archives/...ews-chuys.html