Owner of Phoenix-area restaurants gets prison for tax fraud

PHOENIX (AP) - The owner of five Mexican food restaurants in metro Phoenix has been sentenced to 366 days in federal prison for failing to pay minimum wage to workers and failing to collect or pay taxes.

Federal prosecutors say 56-year-old Isamary Diaz, owner of Armando's Mexican Food, pleaded guilty in the case in April.

According to a plea agreement, Diaz has agreed to pay more than $378,000 in restitution to the government, nearly $289,000 to the Internal Revenue Service and almost $90,000 to the U.S. Department of Labor.

Prosecutors say Diaz filed inaccurate tax returns from 2009 through March 2013 to hide the fact she was employing restaurant workers who were in the country illegally.

They say Diaz paid the workers exclusively in cash and failed to pay her employees the federal minimum wage required by law.

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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