Owner of Santucci’s Original Square Pizza faces federal tax evasion charges
Frank Santucci is accused of keeping two sets of records and bank accounts: One for his tax accountant, and another where he could deposit unreported cash earnings from the restaurants.
The cash was hidden like the cheese.
One of the family leaders of the Santucci’s Original Square Pizza empire — whose thick-crust pies are famous for having their cheese concealed beneath a layer of red sauce — is expected to plead guilty next week to federal tax evasion charges.
Prosecutors said in court documents that Frank Santucci Sr., who took over the family business from his parents nearly 50 years ago, had “informal bookkeeping responsibilities” at its restaurants in South Philadelphia, Roxborough, and on North Broad Street.
When the company began using an electronic point-of-sale system in 2017— expanding beyond its traditional cash-only policy — Santucci began keeping two sets of records and bank accounts, court documents say: One that included funds and details for issues like payroll and expenses, which Santucci showed to his tax accountants, and another where he could deposit cash earnings from the restaurants, which he did not.
Prosecutors said those actions caused his accountants to file false tax returns, and they estimated that Santucci understated the business’ income by more than $850,000 for the years 2017 and 2018.
The charges, which were filed earlier this week and first reported by Axios Philly, include tax evasion and filing false tax returns. Santucci faces the possibility of prison time, although potential terms of his sentence were not specified in court documents.
Richard J. Fuschino Jr., Santucci’s attorney, said Santucci is “taking full responsibility for a personal mistake” and that by pleading guilty, he is “showing the same integrity and character that built a legacy trusted by generations of customers, vendors, and business partners.”
Fuschino said the case will not affect the operations of the business’ many branches or franchises, which now span from the Shore through the city and into suburbs including Paoli and Media.
The case, said Fuschino, “is not going to affect a single slice.”