Date: December 18, 2023 Contact: newsroom@ci.irs.gov U.S. District Judge Roy Dalton, Jr. today sentenced Manuel Tato to four years and nine months in federal prison for willfully failing to pay employment taxes. The court also ordered Tato to pay a $250,000 fine and $93,690.66 in restitution. Tato had pleaded guilty on April 27, 2023. According to court documents, Tato owned and operated multiple restaurants in the Orlando area from at least 2010 to 2017, including Spice Modern Steakhouse. Tato was also the owner and operator of an entity called Core Food Group, an affiliated company for Tato's restaurants that was responsible for processing payroll for the employees of Tato's restaurants. Tato employed approximately 645 restaurant workers between 2010 and 2017 and had a duty to collect and pay over employment taxes on behalf of those employees. Employment taxes include federal income tax, Medicare, and Social Security. While Tato withheld employment taxes from his employees' paychecks and informed his employees that he was doing so on their paystubs, he never actually paid those taxes to the Internal Revenue Service. During the charged time frame, July 2016 to March 2017, Tato failed to pay the Internal Revenue Service $93,690.66. Throughout the entire time Core Food Group existed, Tato failed to pay over $2 million in taxes that he had withheld from his employees and owed in relation to their employment. Tato used a complex corporate structure, different Federal Employer Identification Numbers, and numerous bank accounts to attempt to disguise his criminal activity. During this time, Tato maintained a lavish lifestyle, sending his children to private school, and living in a million-dollar mansion with a private tennis court. Additionally, in 2020, and after being informed that he was under investigation for failing to pay employment taxes, Tato and his family purchased a beach house. "Restaurant owners who neglect their responsibility to file or pay employment taxes are placing themselves in a heated situation by betraying the trust bestowed upon them by their employees and the American public." said Tara K. Reed, IRS-CI Acting Special Agent in Charge. "Today's sentencing cooks up a fresh reminder to those who prioritize a luxurious lifestyle over fulfilling their obligations towards hardworking employees and the nation's tax requirements will not escape justice." This case was investigated by the Internal Revenue Service. It was prosecuted by Assistant United States Attorney Dana Hill and Special Assistant United States Attorney Rachel S. Lyons.
