Local Pizzeria Mogul Pleads Guilty to Tax Evasion

RIDGEFIELD, CT — A local pizza restaurateur pleaded guilty in U.S. District Court in Bridgeport to tax evasion today.

Court records indicate that Bruno DeFabio, 49, of Ridgefield, had various ownership interests in several pizza restaurants in Connecticut and New York which under-reported employee wages and business income to the Internal Revenue Service. DeFabio's restaurants included Pinocchio Pizza in New Canaan, Wilton and Pound Ridge NY; Amore Pizza in Scarsdale, NY; Amore Cucina and Bar in Stamford; and ReNapoli Pizza in Old Greenwich.

DiFabio and others in the businesses engaged in a practice whereby cash was removed from the cash register and not deposited into the restaurant’s operating bank account. The businesses’ outside bookkeeper and accountant used the bank records to determine business gross receipts. When cash was removed from the register and not deposited into the business bank account, the cash would not be reported to the Internal Revenue Service. DiFabio also knew that certain employees had their wages paid in cash, and that a certain number of the employees were paid either a portion or the entirety of their wages “off the books.” By paying various expenses in cash and “off the books,” DiFabio, his business partner and others facilitated the manipulation of net income reported to the IRS and the underpayment of withholding taxes to the IRS.

As a result of the scheme, the loss to the IRS in income taxes and employment taxes for the 2013 through 2015 tax years was $816,954.

DiFabio pleaded guilty to one count of conspiracy to file false income tax returns and payroll tax returns. When he is sentenced, he faces a maximum term of imprisonment of five years, a fine of up to approximately $1.6 million, and full restitution to the IRS.

DiFabio was released on a $100,000 bond pending sentencing, which is not yet scheduled.

On Sept. 24, DiFabio’s business partner in some of his restaurants, Steven Cioffi, pleaded guilty to one count of aiding and assisting in the filing of a false tax return. He also awaits sentencing.