Pepe's Restaurant Owner From Joliet Guilty Of Tax Evasion

JOLIET, IL — A 45-year-old Joliet man who owns five Chicago-area Pepe’s Mexican Restaurant franchises pleaded guilty in federal court Monday to filing false corporate tax returns that underreported approximately $2.5 million in gross receipts and sales.

The U.S. Attorney's Office in Chicago issued a news release announcing that Joliet resident Juan Hurtado guilty to one count of making a false statement in a tax return. He now faces up to three years in federal prison.

U.S. District John F. Kness set sentencing for June 7.

According to federal prosecutors, Hurtado owned Pepe’s franchises in Chicago, Tinley Park, Hickory Hills, Matteson, and Chicago Heights.

From 2016 through 2018, Hurtado underreported the gross receipts and sales of his restaurants by a combined total of approximately $2.5 million. Hurtado further admitted that he created false sales reports and gave them to his accountants, knowing the reports would be used as a basis for underreporting the receipts and sales, federal prosecutors disclosed.

The guilty plea was announced by John Lausch, United States Attorney for the Northern District of Illinois; and Tamera D. Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorney Rick D. Young.