Pittsburgh Doughnut Chain Founder Admits To Federal Charges
PITTSBURGH (AP) - The founder of a doughnut shop chain based in Pittsburgh pleaded guilty to federal charges of underreporting his income in 2010 and then hiding the business from bankruptcy proceedings a year later.
Fifty-five-year-old Ronald Razete agreed as part of Monday's plea in federal court to repay more than $40,000 to the IRS.
The founder of Peace, Love and Little Donuts faces a maximum sentence of eight years in prison when he's sentenced on Oct. 25.
Prosecutors said Razete reported his gross income for 2010 as just a little over $16,000, when in reality his gross income from the doughnut chain was more than $194,000.
Authorities said Razete also failed to report any property or income connected to the business after filing for bankruptcy.
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