Three in Newport Family Indicted in Tax Fraud Case

NEWPORT BEACH â€”  Family owners of a catering business were indicted Thursday by a federal grand jury for allegedly failing to report about $1.8 million in cash income, according to federal prosecutors.

The indictment was the result of investigation of Park Avenue Gourmet Catering of Orange, owned by William and Beverly Wunsch, both 55. Their daughter, 30-year-old Teri Lee Sowers, is the company’s bookkeeper. All three live in Newport Beach, Assistant U.S. Atty. Elana S. Artso said.

Between 1986 and 1988, the catering business had concession stands at sports events such as a recreational car show at Dodger Stadium in Los Angeles and the Bob Hope Classic Golf Tournament in Palm Springs.

The 14-count indictment alleged the Wunsches and their daughter kept a second set of books to document income from the concession stands, said Artson, who is prosecuting the case.

The family also failed to report on their payroll tax returns almost $150,000 in cash wages paid to employees working for them at the U.S. Open Golf Tournament, according to a press release.

In addition, the defendants are accused of not reporting income from Culpeppers, a restaurant run by Park Avenue Gourmet Catering at its headquarters in Orange, Artson said.

The Wunsches told the Internal Revenue Service that no cash register was used at Culpeppers, but IRS special agents searched the headquarters and found cash register receipts and cash reconciliation sheets detailing the unreported income, officials said.

If convicted, William Wunsch faces a maximum penalty of 14 years’ imprisonment and a $1-million fine; Beverly Wunsch could be sentenced to 23 years in prison and fined $1.75 million; and Teri Sowers faces a maximum penalty of 28 years in prison and $2 million in fines, Artson said.