Two Broad Ripple bar owners are facing accusations of hiding millions of dollars in cash from the Indiana Department of Revenue over a five-year period. Robert Sabatini, the owner of Average Joe’s, Mineshaft Saloon, and Rock Lobster, is accused of hiding $4.6 million in cash and not paying $416,000 in taxes. John Yaggi, the owner of Connor’s Pub, is accused of hiding $1.2 million in cash earnings and not paying $113,000 in taxes.
The basis of the accusations stems from the percentage of income these businesses receive from cash sales. Investigators noted that businesses like these typically receive 40% to 60% of their income in cash, but Sabatini and Yaggi allegedly fell below this threshold.
In April, police raided the businesses and homes of the two owners, seizing thousands of dollars in cash. While the case is currently listed as civil, the probable cause affidavit cites a law stating that withholding taxes is a felony.
The lawyer for Sabatini and Yaggi has denied the allegations, stating that they look forward to litigating the case and having the truth come to light. Other business owners in Broad Ripple have expressed concern, noting that their businesses also do not receive 40% of their income in cash, with one owner stating that their establishment typically brings in 90% of their income through card transactions.
The investigation has sparked conversation within the Broad Ripple bar and restaurant community, with many closely watching the developments of the case.