Salem Pizza Shop Owner Failed To Pay $622K In Taxes: IRS

SALEM, NH -- A Salem pizza shop owner admitted to failing to pay hundreds of thousands of dollars in employee-related taxes, federal authorities announced Tuesday. Blake Ruggiero, 44, pleaded guilty to tax fraud in federal court in Concord. Ruggiero has operated Romano's Pizza since 1994.

"Between 2011 and 2016, the defendant failed to pay to the IRS $621,614.88 of employment-related taxes," New Hampshire U.S. Attorney Scott Murray said in a statement. "(Ruggiero) paid a substantial portion of wages to Romano’s employees in cash and failed to declare these wages to the Internal Revenue Service in order to reduce his tax liability."

Murray added, "When business owners fraudulently avoid their tax obligations, they violate federal law and face potential federal prosecution."

Said IRS Agent Kristina O’Connell, "Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS ... Employment tax fraud can also impact employees, who may see future Social Security and Medicare benefits reduced or eliminated due to their employers’ criminal conduct."

Ruggiero will be sentenced March 4.

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