Domenico Mazzella, owner and operator of Mazzella’s Italian Restaurant in Wilmington, has pleaded guilty to multiple charges related to tax evasion and failing to pay employment taxes. The announcement was made by Julianne E. Murray, U.S. Attorney for the District of Delaware.
Court documents show that between 2017 and 2020, Mazzella paid several employees entirely in cash and did not report these payments to his tax preparer. He also diverted more than $600,000 from the restaurant’s bank accounts into his personal account, labeling these transfers as business expense reimbursements. This led to an overstatement of expenses and underreporting of both the restaurant’s income and his own personal income on tax returns.
Mazzella pleaded guilty to four counts of tax evasion and twelve counts of failure to collect, account for, and pay over trust fund taxes. He has agreed to pay $549,370.39 in restitution to the IRS for both evaded income taxes and unpaid employment taxes. Each count carries a maximum sentence of five years in prison; sentencing will be determined by the court according to federal guidelines.
“Domenico Mazzella’s actions were a deliberate attempt to cheat the American public and gain an unfair advantage over law-abiding businesses and citizens,” said U.S. Attorney Murray. “This plea demonstrates that our office, working with our law enforcement partners, will aggressively pursue those who willfully evade their tax obligations.”
“IRS-Criminal Investigation takes these violations of law very seriously,” said Yury Kruty, Special Agent in Charge of the Philadelphia Field Office. “This plea exhibits a positive message to honest taxpayers and further demonstrates that the IRS and U.S. Attorney’s Office are duty bound to protect the integrity of the U.S. tax administration system, and to make sure everyone complies with their tax obligations.”
The investigation was conducted by IRS-Criminal Investigation, with Assistant U.S. Attorney Bryan C. Williamson prosecuting.
Additional information about this case can be found on the website of the U.S. Attorney’s Office for the District of Delaware or through PACER by searching Case No. 25-113-GBW.
