Restaurant hit with tax evasion

Fratelli’s Restaurant, located 2507 Eastchester Road, along with its owners, Ed Bastone and Luigi Bastone, were convicted and sentenced to conditional discharge for tax evasion in excess of $600,000. Photo by Amanda Marinaccio

When did paying taxes become optional? A Pelham Gardens restaurant has been taking more than people’s orders, it seems, having been recently convicted of evading taxes since 2004.

Fratelli’s Restaurant, located 2507 Eastchester Road, and owners, Ed Bastone, 42, and Luigi Bastone, 44, were charged with and convicted of evading more than $ 600,000 in taxes and insurance premiums.

The crime was discovered through an audit by the New York City Department of Finance, which discovered a difference between the business records, receipts and financial ledgers in the gross sales reports and what had been filed on the corporate tax returns.

The Bastones and the corporate entity each pled guilty to one count of New York City Administrative Code 11-404, submitting false returns or reports, for the calendar year 2004, and were convicted on Wednesday, May 13.

Following an examination of business records from January 2002 through December 2007, it was found that the ‘tax returns did contain false statements and/or false information in that the corporation’s tax returns indicated gross sales and profit less than the amount of gross sales and profit indicated in the business records recovered.’

In total the restaurateurs were discovered to have owed money to New York City and New York State from December 1, 2004 through May 31, 2007.

The Honorable Steve Barrett sentenced the corporation and it’s owners to a conditional discharge, after prior restitution had been paid in the amount of $ 600,015.71.

The restaurant owners refused to comment on the matter.

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