A man who owned a Johnson County restaurant has pleaded guilty in a case in which he underreported his business income by more than $2.2 million.
Marco Pacheco, who lived in Floyd County but owned the Fiesta Palace in Johnson County between 2010 and 2013, pleaded guilty to one charge involving signing a false tax return and one charge of giving false information to impede an Internal Revenue Service action.
Pacheco’s plea agreement said he underreported his business income by $920,664 for 2010; $1,016,845 for 2011; and $309,516 for 2012.
The total tax loss as a result was $271,879, the document said.
Pacheco kept two bank accounts but first told the IRS he had only one, then later said the second account had little money in it even though that was not true, the plea agreement said.
Pacheco agreed to pay restitution to the IRS.
He faces up to three years on each charge. Sentencing is scheduled in February.