PHILADELPHIA (KYW Newsradio) — The owner of a popular Philadelphia pizza chain faces federal tax evasion charges after prosecutors say he misled his accountants for two years about the business’ cash income.
Prosecutors say the income discrepancy originated at three locations of Santucci’s Original Square Pie in Philadelphia, where Frank Santucci Sr. held “informal bookkeeping duties.”
Santucci Sr. took over the empire from his parents more than 50 years ago. The business was a longtime cash-only operation, but finally began accepting electronic payments in 2017. Court documents say that’s when Santucci Sr. began keeping two books.
Authorities say one included payroll and expenses that Santucci Sr. gave to his accountants during tax season. The other? It tracked the cash earnings of locations on North Broad Street, in Roxborough and South Philly.
Officials say Santucci Sr. did not give the second book tracking cash earnings to his accountants, causing them to file false tax returns for the business in 2017 and 2018.
Prosecutors estimate the discrepancy led to an underreported income of $850,000 over the two years.
Santucci Sr. faces the possibility of prison time, but court documents did not specify sentencing terms. His attorney expects him to plead guilty next week.