Orlando restaurant owner sentenced to federal prison for failure to pay $2M in employment taxes

ORLANDO, Fla. — A man who once owned and operated multiple restaurants in the Orlando area is headed to federal prison for willfully failing to pay taxes on behalf of the people he employed.

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According to court documents, Manuel Tato owned several restaurants in the Orlando area from at least 2010 to 2017, including Spice Modern Steakhouse.

Tato was also the owner and operator of Core Food Group, an entity affiliated with Tato’s restaurants that was responsible for processing payroll for his employees.

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According to the Department of Justice, Tato employed approximately 645 restaurant workers between 2010 and 2017 and was required to collect and pay employment taxes, which include federal income tax, Medicare, and social security.

Though he withheld employment taxes from his workers’ paychecks and informed them he was dong so on their paystubs, investigators say Tato never actually paid those taxes to the Internal Revenue Service.

Between July of 2016 and March of 2017, investigators say Tato failed to pay more than $93,000 he owed to the IRS.

For the entire time Core Food Group existed, officials say Tato failed to pay more than $2 million in taxes that he withheld from his employees.

According to the Department of Justice, Tato disguised his criminal activity by using a complex corporate structure, different Federal Employer Identification Numbers, and multiple bank accounts.

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During the charged time frame, investigators say Tato maintained a “lavish” lifestyle, sending his kids to private school and living in a million-dollar mansion with a private tennis court.

According to the Department of Justice, after Tato learned he was under investigation in 2020, he and his family purchased a beach house.

Tato was officially indicted in September 2022 and pleaded guilty on April 27, 2023.

On Monday, U.S. District Judge Roy Dalton, Jr. sentenced Tato to spend four years and nine months in federal prison. He faced a maximum sentence of up to five years.

Tato was also ordered to pay a $250,000 fine and $93,690.66 in restitution.

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“Restaurant owners who neglect their responsibility to file or pay employment taxes are placing themselves in a heated situation by betraying the trust bestowed upon them by their employees and the American public.” IRS Criminal Investigations Special Agent in Charge Tara K. Reed said in a statement announcing the sentence. “Today’s sentencing cooks up a fresh reminder to those who prioritize a luxurious lifestyle over fulfilling their obligations towards hardworking employees and the nation’s tax requirements will not escape justice.”

The case was investigated by the IRS and prosecuted by Assistant U.S. Attorney Dana Hill with Special Assistant U.S. Attorney Rachel S. Lyons.

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