Owner of Pizza Restaurants in New York and Connecticut Pleads Guilty to Federal Tax Offense
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced yesterday that Ridgefield resident Bruno DiFabio, 49, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to a federal tax offense.
According to court documents and statements made in court, DeFabio has had various ownership interests in several pizza restaurants in Connecticut and New York, including Pinocchio Pizza LLC, doing business as Pinocchio Pizza in New Canaan, Connecticut; Top Oven Restaurant Corp., doing business as Pinocchio Pizza in Wilton, Connecticut; DiFabio Brothers Pizza Corp., doing business as Amore Pizza in Scarsdale, New York; Odell Pizza, Inc., doing business as Amore Cucina and Bar in Stamford, Connecticut; Nepperhan Restaurants Group, Inc., doing business as ReNapoli Pizza, in Old Greenwich, Connecticut, and Homefield Restaurant Corp., doing business as Pinocchio Pizza in Pound Ridge, New York.
DiFabio and others in the businesses engaged in a practice whereby cash was removed from the cash register and not deposited into the restaurant’s operating bank account. The businesses’ outside bookkeeper and accountant used the bank records to determine business gross receipts. When cash was removed from the register and not deposited into the business bank account, the cash would not be reported to the Internal Revenue Service. DiFabio also knew that certain employees had their wages paid in cash, and that a certain number of the employees were paid either a portion or the entirety of their wages “off the books.” By paying various expenses in cash and “off the books,” DiFabio, his business partner and others facilitated the manipulation of net income reported to the IRS and the underpayment of withholding taxes to the IRS.
DiFabio pleaded guilty to one count of conspiracy to file false income tax returns and payroll tax returns. When he is sentenced, he faces a maximum term of imprisonment of five years, a fine of up to approximately $1.6 million, and full restitution to the IRS.
DiFabio is released on a $100,000 bond pending sentencing, which is not yet scheduled.
On September 24, 2018, DiFabio’s business partner in some of his restaurants, Steven Cioffi, pleaded guilty to one count of aiding and assisting in the filing of a false tax return. He awaits sentencing.
This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.