Tax fraud trial set for family in October

Philip M. Priola, one of the owners of U Grill It Inc., which did business in Machesney Park Mall as Texas Grill Steakhouse and Lounge, was charged by federal officials July 29, 2003, for allegedly conspiring to “defraud” the Internal Revenue Service and Department of the Treasury.

Also named in the indictment was Priola’s daughter Lynann M. Gage (formerly Priola) and Priola’s son Thomas J. Priola. Both were active in management of L.T.’s during the period alleged in the indictment.

The indictment alleged that from at least 1992 to 1998, the named family members “intentionally conspired” to under report “gross receipts and net profits of LT’s Bar.” It also alleged a cash skimming operation took place for the benifit of the named family members.

Included in the alleged skimming operation were proceeds from “cigarette vending machines and coin-operated amusement machines.”

The case is set for a jury trial beginning Oct. 8, 2004, at 8:45 a.m., before Federal District Court Judge Philip G. Reinhard in the federal courthouse in Rockford.

Enjoy The Rock River Times? Help spread the word!