Crime & Safety

Papa John's Franchise Owner Accused of Sales Tax Theft

Arrest follows August bust of franchise owner who operated chain store in Bayside.

A Papa John’s franchise owner with chain stores in Queens has been accused of sales tax theft, the Queens district attorney said.

The defendant is the second Papa John’s franchise owner with Queens pizzerias to be arrested on the charge in recent months.

Uchenna Onuaguluchi, 46, of Rosedale, has been arrested on charges of criminal tax fraud, grand larceny, criminal possession of stolen property, falsifying business records and offering a false instrument for filing, Queens DA Richard Brown said.

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If convicted, the defendant could face up to 15 years in prison.

Onuaguluchi operates six Papa John’s franchises, including one at 63-110 Woodhaven Blvd. in Rego Park and others in Flushing, Richmond Hill, Jamaica, the Rockaways and Brooklyn.

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“This is yet another example of a business owner failing to turn over to the state hundreds of thousands of dollars in sales tax that she allegedly collected from customers,” Brown said. “The government relies on the collection of taxes to operate and while most business owners are compliant with the law, those who are not will be brought to justice.”

In August, Papa John’s franchise owner Syed Mehboob, who operates chain stores in Bayside, Sunnyside, Corona, Woodside and Astoria, was arrested on similar charges. His case is currently pending in Queens Criminal Court.

Onuaguluchi has been accused of a $610,000 state sales tax theft that resulted from underreporting sales between March 1, 2005 and May 31, 2009.

During that time, she is alleged to have collected approximately $671,576 in sales tax, but only reported $60,630 of it to the state’s Department of Taxation and Finance, the DA said.


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