- 6 - In January of 1986, Mr. Beretta invested $30,000 to open a Peppertree Restaurant in Atascadero, California. Mr. Beretta's partner in this venture was Garlo Enterprises, Inc., a wholly owned corporation of Gary Longfellow. Although the Atascadero Peppertree Restaurant was owned by Garlo Enterprises, Inc., Mr. Beretta was the primary financial force behind the restaurant. Garlo Enterprises, Inc., and Mr. Beretta formed a partnership to operate the Atascadero Peppertree Restaurant. Mr. Beretta assisted in the preparation of Garlo Enterprises, Inc.’s, corporate tax returns (Forms 1120) for the years 1986 through 1992. Mr. Beretta and Mr. Longfellow agreed to split the profits from the Atascadero Peppertree Restaurant equally. Mr. Beretta suggested to Mr. Longfellow that they "skim" money from the cash register in order to avoid paying taxes on any profits from the restaurant. Mr. Longfellow agreed, and he began removing between $100 and $200 a day from the cash register, depending on the restaurant's cash-flow. At the end of the day, Mr. Longfellow would place Mr. Beretta's money in a bag for Mr. Beretta to come by and retrieve. In order to account for the skimmed proceeds, Mr. Longfellow would make false overrings on the cash register and then remove an amount of cash equal to the false overring. Therefore, the skimmed profits were not reported on the restaurant's books.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011