A former Buffalo pizza shop owner was ordered to serve 21 months in prison and pay $176,000 restitution to the Internal Revenue Service after his sentence on charges of tax evasion, U.S. Attorney William J. Hochul Jr. reported.
Michael Gerace, 49, maintained two separate sets of books and records for his business, Abbott Pizza on Abbott Road in Buffalo, between 2005 and 2007, according to Assistant U.S. Attorney Mary Ellen Kresse.
Kresse said the first set of books, which accurately recorded the total revenue of the pizzeria, was removed and concealed after he learned he might be under federal investigation.
A second set of books recorded only a portion of the pizzeria's revenue. Gerace provided that set to his accountant for use in preparing Gerace's personal and corporate tax returns for 2005, 2006 and 2007.
Authorities said Gerace's unreported income was more than $500,000, resulting in a loss to the government of $176,000 in income taxes.