GRAND RAPIDS, Mich. (WOOD) — The owners of Farah’s Bar on Michigan Street want to expand, but 24 Hour News 8 learned the owners are facing federal charges.
The owner is proposing a 1,200-square foot addition to the west of the bar, but the owners could soon be behind bars.
Michael Farah and his son Brian are accused of deleting sales from Farah’s, Kuzzin’s and Drake’s in order to avoid paying the federal income tax.
According to court documents, Brian Farah admitted he committed the crime. 24 Hour News 8 went to his listed address to talk to him about the case, but no one opened the door.
Court documents say that Michael and Brian Farah tried to hide the true income of Kuzzins, Farah’s and Drake’s by deleting the Point Of Sales or POS records.
The documents state that Brian Farah said he was aware that substantial amounts of income was not reported to the IRS in 2013 and 2014. He admitted that he contacted the POS administrator to learn how to delete POS records. It’s reported that Brian Farah then emptied the recycle bin on the computer to hide the evidence.
The court documents show that in 2013, $232,000 went unreported on the businesses tax return and in 2014, roughly $176,000 went unreported; totaling more than $8,000 in unpaid taxes.
24 Hour News 8 went to Michael Farah’s home to get his side of the story. His garage door opened, but no wanted to come out to talk.
Michael Farah is now fighting the indictment. His son Brian entered the plea deal, which includes potential prison time, paying fines and restitution.
This case could affect all three business’ liquor licenses and the proposed expansion at Farah’s.