Wednesday, April 23, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Poor Red’s owners arrested on tax charges

DSC_0804e

LAW ENFORCEMENT from the Franchise Tax Board and Employment Development Department enter Poor Red's in El Dorado Wednesday morning to inventory items seized in an investigation of suspected tax fraud. Democrat photo by Shelly Thorne

By
From page A1 | April 19, 2013 | 11 Comments

Just after 9 a.m. on April 17, officers were beginning to take inventory at Poor Red’s Bar-B-Q in El Dorado after serving a search warrant. Elsewhere, a search warrant on the owners’ house was being served, with the owners having been arrested earlier in the morning.

“It’s an alleged underground economy case,” Franchise Tax Board spokesman John Barrett said, watching FTB agents coming in and out of the bar. “They owe several years of tax returns, both personal and business.” He noted they had also been paying employees in cash to avoid taxes.

According to a press release from the El Dorado County District Attorney’s Office, the tax problems go back six years, failing to pay nearly $350,000 in taxes.

The agents, mostly from the FTB, worked to clear the building. Two opened a small shed, used as a refrigerator, between the main bar and a parking structure with guns drawn. After opening it, they found a few kegs of beer. “It’s kind of like stacks of cash, but it’s beer,” one agent joked.

“Great job, long time coming,” yelled one passerby, clapping his hands.

The owners, Michael and Brenda Adams, were arrested earlier in the morning on more than 30 counts of tax evasion and insurance fraud, the DA’s press release announced. They are being held on $350,000 bail at the El Dorado County Jail.

The investigation and warrant service was carried out by the FTB, the DA’s Office, the Employment Development Department, the Board of Equalization and the El Dorado County Sheriff’s Department. The California Department of Insurance was also involved in the investigation.

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Discussion | 11 comments

  • WendyApril 19, 2013 - 8:13 am

    FINALLY!!! These 2 have stepped on laws, taxes and people for to long. Hopefully they will be held accountable and learn a lesson.

    Reply | Report abusive comment
  • shawnaApril 19, 2013 - 10:12 am

    I feel bad for the hard working employees! I miss the ones that are no longer with us and I hope that have heard the need in heaven!

    Reply | Report abusive comment
  • robertApril 19, 2013 - 10:26 am

    Red's BBQ was the finest, sorry the government is so far reaching and unforgiving. We all feel the pinch of big brother

    Reply | Report abusive comment
  • LeeApril 20, 2013 - 7:16 am

    For the most part the govt. is far reaching, but these scum deserve every thing they get. They have ripped off every one they have dealt with. Hope they go away for a long time.

    Reply | Report abusive comment
  • DonnaApril 20, 2013 - 11:17 am

    What took sooo long?

    Reply | Report abusive comment
  • Walking TallApril 21, 2013 - 4:46 am

    Same ol news here, pay or quit, it is really that simple. Both husband and wife have done this before, remember "St. Pauly's in Kyburz", same owners same activity. This investigation was completed and the pair didn't pay then and the restaurant closed down. Then they bought "Poor Reds", no surprise that they would do it again and keep on doing it. The victims then as now are the employees, but they were benefited by the "under the table pay". Then the BOE (Board of Equalization) stepped in and a raid was conducted and the charges applied. Still they were allowed to continue the same criminal activity or "business as usual", fast forward and still they haven't paid. Shouldn't be hard to convict and remove these who don't follow the law. Don't have to look far to find another restaurant (The Red Apple Cafe), doing the same thing. Maybe the BOE will open an office here and investigate all those who have been getting away with the same type of "we don't pay taxes" attitude for years. Oh well "another one bites the dust and another one is down,another one is gone, right here in river city....more to come

    Reply | Report abusive comment
  • WendyApril 21, 2013 - 9:24 am

    We need to cross our fingers and hope that the DA gets these 2 or they WILL destroy another business to line their pockets at the expense of its employees and us tax payers. Why some people feel they are superior to all others is just unacceptable - prison time.

    Reply | Report abusive comment
  • MACApril 21, 2013 - 7:59 pm

    Probably don't have enough money for taxes. Just look at their haircuts, they can't even afford that!!

    Reply | Report abusive comment
  • LpApril 21, 2013 - 11:17 pm

    Sad...but not the best ribs....

    Reply | Report abusive comment
  • WendyMay 09, 2013 - 11:09 am

    I heard that Bree is out and going into poor Reds safe.....will it ever end?

    Reply | Report abusive comment
  • budMay 29, 2013 - 11:43 am

    When do these thieves go to trial???

    Reply | Report abusive comment
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