Crime

Happy's Pizza Chain Founder is Unhappy: Convicted in Major Tax Fraud Scheme

November 20, 2014, 3:53 PM by  Allan Lengel

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With a first name like "Happy," you're bound to have some days that don't live up to your name.

Well, Happy Asker, president and founder of the Happy's Pizza chain, can't be very happy.

A federal jury in Detroit on Wednesday convicted him of conspiracy to defraud the United States and 32 counts of tax crimes in a scheme involving millions of dollars.

A press release issued by the U.S. Attorney's Office, stated:

Happy Asker’s convictions include three counts of filing false federal individual tax returns for the years 2006 through 2008, 28 counts of aiding and assisting the filing of false federal income and payroll tax returns for several Happy’s Pizza Franchises restaurants for the years 2006 through 2009, and one count of engaging in a corrupt endeavor to obstruct and impede the administration of the Internal Revenue Code.

During trial, the evidence established that Asker was the president, founder and public face of the Farmington Hills, Michigan, based Happy’s Pizza franchise.  He also had ownership interests in several Happy’s Pizza franchises located in Michigan, Ohio and Chicago.  From June 2004 through April 2011, Asker, along with certain franchise owners and employees, executed a systematic and pervasive tax fraud scheme to defraud the Internal Revenue Service (IRS). 

Gross sales and payroll amounts were substantially underreported to the IRS on numerous individual corporate income tax returns and payroll tax returns submitted for nearly all 60 Happy’s Pizza franchise restaurants located in Michigan, Ohio and Illinois

Evidence admitted at trial established that from 2008 to 2010, more than $6.1 million in cash gross receipts were diverted from approximately 35 different Happy’s Pizza stores in the Detroit area, Illinois and Ohio.  In total, the evidence at trial established that Asker and certain employees and franchise owners failed to report to the IRS approximately $3.84 million of gross income from the various Happy’s Pizza franchises and approximately $2.39 million in payroll.

The case also included allegations that Asker purposely misled IRS-Criminal Investigation special agents during voluntary interviews on Nov. 5, 2010, and Dec. 1, 2010. 

Four other defendants in the case had already pleaded guilty prior to Asker’s trial. 



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