Where You Wish No One Knew Your Name

13399593 - dollars

Cheers, the popular 1980’s television sitcom about a bar in Boston, Massachusetts paints a picture of a cozy and friendly establishment where everyone knows your name. The former owner and operator of a sports bar and grill in neighboring New Hampshire fleeced more than $91,000 in taxes from his customers and pocketed the money, instead of paying the revenue to the state. (Let’s just say, the atmosphere is no longer cheery in this establishment. His customers and the state of New Hampshire definitely know his name for sure.)

The man owned and operated the bar for a little over three years. During that time, he collected $91,917.66 in rooms and meals tax from his patrons. Instead of passing it on to the state as required by law, he pocketed the funds. (That’s about $30,000 extra per year in income.) In addition to being in trouble for tax fraud, in a separate incident the former bar owner made a false statement during a Department of Labor administrative hearing regarding labor law violations.

The 49-year-old former bar and grill owner pleaded guilty to theft, tax fraud and perjury. He received two year-long sentences in county jail for the theft and perjury charges and paid $40,000 in restitution at the hearing. He was also given a three-and-a-half to seven-year sentence in state prison for the tax fraud charge. (Lucky for him, the sentence was suspended for five years on good behavior and he will have to pay the remaining $51,917.66 in restitution over the next year-and-a-half to make up for the owned rooms and meals tax.)

I wonder what the former bar owner did with that extra income over the three years. Did he buy a boat like Sam did in the popular sitcom and try to sail the world? Now that his case has been profiled in the news, I’m guessing he’s wishing that not everyone knew his name.

Source: Today’s ”Fraud of the Day” is based on an article entitled, ”Former Manchester bar owner sentenced to 12 months for tax fraud,” published by The Union Leader on November 3, 2016.

CONCORD — A former Manchester bar owner was sentenced to 12 months in jail and ordered to pay $91,917.66 in restitution to the state for owed rooms and meals tax.

Timothy Gage, 49, of Manchester, pleaded guilty Thursday in Merrimack County Superior Court to theft, tax fraud and perjury.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.