Omega Burger Owners Sentenced to Prison on Federal Tax Conspiracy Charges

MILWAUKEE -- The owners of three popular Milwaukee-area restaurants will be spending time in prison after pleading guilty to federal tax conspiracy charges.

Paul Bouraxis will be sentenced to 2 years in prison; Andreas Bouraxis will be sentenced to 1 year and 1 day in prison; and Freida Bouraxis will be sentenced to 6 months of home detention, it was announced Wednesday by the U.S. Department of Justice.

Paul, Andreas and Freida Bouraxis own the Omega Burger on S. 27th St. in Franklin, as well as El Fuego in Milwaukee and El Beso in Greenfield.

The Investigation
Federal investigators found that the defendants skimmed more than $3 million from their restaurants and underpaid federal income and payroll taxes by more than $1.3 million from 2007-2010.

During the course of their investigation, federal investigators found that the Bouraxis family was also:
Skimming cash receipts from their restaurants.

Paying restaurant employees in cash without withholding payroll taxes.

Failing to report a majority of the skimmed cash as income on their personal tax returns.

As part of the investigation, federal agents seized about $1.7 million in cash, as well as silver and gold bars, and jewelry from their restaurants, residence, and safe deposit boxes.

As part of their plea agreements, the defendants have agreed to forfeit a total of $442,000 from the seized funds to the United States. In addition, the defendants have agreed that the remaining seized cash and the proceeds from the sale of the silver, gold, and jewelry will be applied to their tax obligations.