Cihan Calkap, the former owner of Mimmo’s Pizza and Kitchen in Philadelphia, pleaded guilty to one count of tax evasion on Tuesday before United States District Judge Kai N. Scott, according to an announcement from U.S. Attorney David Metcalf.
Court documents and statements reveal that between 2015 and 2019, Calkap operated the restaurant while withholding cash receipts from business bank accounts. He used these funds both for personal compensation and to run an off-the-books payroll for most of his approximately 25 employees.
Prosecutors said Calkap avoided taxes by supplying incomplete financial information to his accountant, allowing only access to business bank records that did not show all cash income. This led the accountant to prepare inaccurate corporate and personal income tax returns for both Mimmo’s and Calkap himself. From 2015 through 2018, he underreported the restaurant’s total receipts.
Calkap also misrepresented employee numbers to his return preparer, claiming there were only four employees—including himself—while the actual number was about 25. This allowed him to reduce employment taxes collected and paid over to the IRS on behalf of Mimmo’s.
“The defendant is scheduled to be sentenced on May 14 and faces a maximum possible term of five years in prison.”
The case was investigated by IRS Criminal Investigation. Assistant Deputy Chief Thomas F. Koelbl and Trial Attorney Likhitha Butchireddygari from the Department of Justice Criminal Division’s Tax Section are prosecuting with help from Assistant United States Attorney Patrick J. Murray.
