Grand Rapids bar owner sentenced to 18 months in federal prison

Posted at 2:39 PM, Jul 12, 2017
and last updated 2017-07-12 14:40:18-04

GRAND RAPIDS, Mich. — The owner of three Grand Rapids area bars was sentenced to 18 months in federal prison for obstructing an IRS audit for not reporting business or individual tax return in 2013 and 2014.  Brian Farah owns Farah’s, Kuzzin’s and Drake’s Bars.

Following an IRS audit in 2015, Farah and his son Brian attempted to hide the tax fraud by disposing of their computerized sales records. During the incident, Farah contact the company that maintain the bars’ sales records with help on how to destroy the information.

U.S. District Judge Paul A. Maloney also sentenced Farah to pay a fine of $5,000 and he will have to pay a restitution of $221,730.25. Following release Farah will remain under supervision for a year.

“Michael Farah intentionally destroyed his records to avoid an IRS audit,” said IRS Criminal Investigation Special Agent in Charge Manny Muriel. “This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions.”

Brian Farah was previous sentenced and will serve 13 months in federal prison for assisting in the crime.