Crime

Popular Lexington Mexican restaurant still open amid IRS investigation

Key Takeaways
Key Takeaways

AI-generated summary reviewed by our newsroom.

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  • Mi Pequeña Hacienda restaurants remain open amid ongoing IRS investigation.
  • Federal probe alleges $2.3M in underreported receipts over a five-year span.
  • Salas Enterprises pledges cooperation, transparency and continued operations.

A popular Central Kentucky Mexican restaurant chain that is being investigated by the IRS will remain open during the investigation, according to its general manager.

Julian Gallegos, vice president of Salas Enterprises Corp., which owns the Mi Pequeña Hacienda restaurants in Lexington and Nicholasville, said the chain is fully cooperating with the IRS’ investigation. Officials from the IRS’ Criminal Investigation Unit and Kentucky State Police were spotted at the Lexington location on Lansdowne Drive carrying out several bins on Aug. 5.

IRS and state police officials also visited the Nicholasville restaurant on Cynthia Drive on Aug. 5, Gallegos said. The restaurants were closed while the searches took place.

A search warrant for the restaurant chain says the investigation began around February 2024 and determined the restaurants were underreporting its receipts by more than $2.3 million over five years.

In a statement posted on Facebook, Gallegos said the chain is committed to compliance and transparency, and it will continue serving customers during the investigation.

“Mi Pequeña Hacienda still open has proudly served the Lexington and Nicholasville community for years, and we appreciate the continued support and prayers, understanding of our loyal customers and staff,” Gallegos said on the social media post.

Lorena Salas Gallegos is the president of the corporation and owner of the restaurants. Lorena and Julian Gallegos are husband and wife.

An IRS spokesperson has not yet responded to a request for comment on the status of the case. A state police spokesman also has not yet responded.

Christopher Leach
Lexington Herald-Leader
Chris Leach is a breaking news reporter for the Lexington Herald-Leader. He joined the newspaper in September 2021 after previously working with the Anderson News and the Cats Pause. Chris graduated from UK in December 2018. Support my work with a digital subscription
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