Bare Feet Shoes chain owner charged in tax fraud scheme
The owner of the Bare Feet Shoes chain and one of his store managers have been charged in an income tax fraud scheme to pay employees under the table in cash and with underreporting their own income, federal law enforcement officials announced today.
The owner of the Bare Feet Shoes chain and one of his store managers have been charged in an income tax fraud scheme to pay employees under the table in cash and with underreporting their own income, federal law enforcement officials announced today.
Uri Jacobson, 41, of Philadelphia is charged with paying nearly $2.8 million in wages to his employees without reporting it to the Internal Revenue Service between 2004 and 2009.
Jacobson operates a dozen shoe and discounts stores that employ 200 people in Pennsylvania and New Jersey, U.S. Attorney Zane David Memeger.
The tax loss to the government amounted to $596,628, the officials said.
Elena Falaschetti, 53, of Philadelphia, a store manager is charged with conspiring with Jacobson in the scheme.
Both also are charged with underreporting their own incomes.
Prosecutors allege Jacobson did not report more than $700,000 income between 2004 and 2008, while Falaschetti hid more than $120,000 in income between 2006 and 2009.
If convicted of all charges, Jacobson faces a possible sentence of 24 to 30 months in prison, restitution to the IRS and possible fines. Falaschetti faces a possible sentence of 10 to 16 months in prison, restitution to the IRS and possible fines.