A popular Metro East restaurant and its owners have been sentenced to probation and ordered to pay fines and restitution following a guilty plea to tax charges in U.S. District Court. Rodney and Kenneth Archer, and their business Lotawata Creek Inc. in Fairview Heights, pleaded guilty in April to conspiracy to obstruct the IRS in the assessment and collection of federal taxes.
The Archer brothers admitted that beginning in 2010 through in or about July 2015, they altered and manipulated the information in the restaurant’s point of sale system to lower the reported cash sales and then removed the corresponding amount of cash from the business prior to being deposited and reported as gross receipts. This had the effect of lowering the total gross receipts reported on the tax returns and thus lowered the total taxable income reported to the IRS. The Archers were sentenced to four years' probation. Lotawata Creek was sentenced to five years' probation. Each has also paid more than $219,000 direct restitution, and will also be required to pay additional penalties and interest of a yet to be determined amount to both the Illinois Department of Revenue and the IRS.