Businessmen sentenced in illegal immigrant and tax fraud case

CEDAR RAPIDS, Iowa The former owners of restaurants in Cedar Rapids and Waterloo have been sentenced to federal prison in an illegal immigrant and tax evasion case.

Prosecutors say Luis Armando Varela-Arteaga and Jose De Jesus Ibarra-Castaneda arrived in the U-S illegally and worked to reach the American dream, which included four restaurants and expensive homes. But, prosecutors say, that dream doesn’t include not paying taxes.

Varela-Arteaga was sentenced yesterday in U-S District Court in Cedar Rapids to two and a-half years in prison for income tax fraud, financial structuring to avoid paying taxes, aiding and abetting marriage fraud and two counts of conspiracy to commit marriage fraud.

Ibarra-Castaneda was sentenced to more than two years in prison for making false statements on an income tax return and six months for employing illegal aliens.

Via WOI News

This post written Dec., 2005 on

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