WASHINGTON — A judge sentenced a Virginia couple to almost five years in prison on Monday for failing to pay over a million dollars in taxes and stealing COVID relief funds to go on vacation while operating as the owners of several restaurants in the Washington, D.C. area.
Gholam "Tony" Kowkabi, 63, and Karen Kowabi, 64, are accused of failing to pay more than $1.35 million in taxes as well as stealing $738,000 in COVID relief funds. Both were sentenced to 57 months in prison followed by 24 months of probation.
In addition to evading taxes, Gholam Kowkabi was also sentenced for stealing more than $738,000 from the emergency small business relief funds his Georgetown restaurant, Ristorante Piccolo, received during the COVID-19 pandemic. As part of his guilty plea, Kowkabi acknowledged having spent money intended to help his business on a waterfront condo in Ocean City, as well as personal investments, vacations for his family, and college tuition for his children.
On August 14, Gholam Kowkabi pleaded guilty to wire fraud and tax evasion. Following his prison sentence, he will be placed on three years of supervised release. Gholam Kowkabi must pay $1,351,038.51 in restitution to the IRS and $738,657.18 in restitution to the Small Business Administration. In addition, the judge ordered him to give up the Ocean City condo, and interest in multiple joint ventures.
Karen Kowkabi also pleaded guilty on Aug. 14 to five counts of willfully failing to pay taxes. She was ordered to pay $1,351,038.51 in restitution to the IRS, owed jointly with Gholam Kowkabi.
For more on this alleged scheme, click here.
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