Earlier in 2013, the founder of Happy’s Pizza, a Michigan-based restaurant that has locations in California, Indiana, Ohio, Texas and other parts of the country, has been indicted on charges of tax evasion, federal conspiracy and fraud. At that time a spokesperson from Happy’s Pizza said that the company plans to fully cooperate with authorities during the ongoing investigation. The Farmington Hills-based pizza company says it has 100 locations in Michigan and other states.
Just recently Happy Asker was convicted of a multimillion dollar tax fraud scheme, according to the Department of Justice. Asker is the president, founder and public face of the Farmington Hills-based pizza franchise.
Evidence admitted at trial showed that from 2008 to 2010, more than $6.1 million in cash gross receipts were diverted from approximately 35 Happy’s Pizza stores in the Detroit area, Illinois and Ohio, according to the press release…
…Asker and certain employees and franchise owners reportedly failed to report to the IRS approximately $3.84 million in gross income from the various Happy’s Pizza franchises and approximately $2.39 million in payroll, according to the press release. A portion of the unreported income was shared among most of the franchise owners, including Asker, in a weekly divided cash profit, the press release stated The cash was distributed among the investors and managers of the included franchises. The IRS is owed more than $6.2 million in taxes as a result of the scheme, according to the release. The evidence at the two-week trial also established that Asker misled IRS criminal investigation special agents during voluntary interviews in 2010. Asker denied knowing co-defendant Arkan Summa, a convicted felon, and did not disclose Summa’s association with a number of Happy’s Pizza franchise restaurants, according to the press release. Documents admitted during trial indicate Summa shared in diverted gross receipts from at least one Happy’s Pizza franchise in Toledo, Ohio.
