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Update: Tallahassee business owners arrested for tax fraud

Tax Fraud
Posted at 4:40 PM, Mar 29, 2013
and last updated 2014-05-16 08:55:38-04

TALLAHASSEE, Fla. (WTXL)--Two Tallahassee business owners are out on bond tonight after being arrested for tax fraud. They're accused of collecting sales tax from customers and not turning the money in to the state.

"Angelettes? Yea I eat here probably every couple weeks if their open," said John Daily

Daily frequents Angelette's restaurant located on the 3500 block of Blair Stone Road in Tallahassee.

But Daily says the restaurant is always packed with people. He added he was unaware Marlo Angelette, the owner of the restaurant was arrested.

"Yea it was kind of shocking that the business owner doesn't pay taxes or didn't pay taxes," said Daily.

Angelette is now facing felony and misdemeanor charges for stealing state funds, failure to file tax returns, and not paying taxes.

There's a sign hanging outside of the door of Angelette's that read "cash and check only." Customers tell WTXL, the restaurant owner changed the policy changed only a few months ago.

"You know, why don't they accept credit cards? It doesn't make sense if everyone uses them, it doesn't make any sense that no one would accept them," said Daily.

The Department of Revenue says Angelette owes the state more than $16,000 dollars.

We tried reaching out to Angelette but we were told she was unavailable to comment.

Meanwhile, the Lofty Pursuits and Infinite Illusions hobby store owner Greg Cohen was also arrested on the same charges. The state says he now owes more than $30,000 dollars.

We spoke with him over the phone, he says he's been instructed by his lawyer not to comment at this time

The DOR says each of the owners collected sales tax from their customers at their businesses but never paid it back to the state.

"Its kind of disappointing to be honest with you.we all pay taxes, I pay taxes, probably a lot more than we probably want to but its disappointing when a business owner doesn't do that contribute their fair share," said Daily.

While the doors still remain open for both businesses,if the owners are convicted, they could be facing some jail time.