Agim Zendeli, the former owner of the Ziggie’s restaurant chain, pleaded guilty in federal court today to withholding more than $1.3 million in payroll taxes owed to the IRS.
The 43-year-old Springfield resident operated the chain 1998-2014. During that time, the chain had Missouri restaurants in Springfield, Republic, Willard, Marshfield, Nevada, West Plains, Rolla, Carthage and Poplar Bluff and Kansas locations in Fort Scott and Pittsburg, according to a news release from the office of Tammy Dickinson, U.S. attorney for the Western District of Missouri.
During the extent of his ownership, Zendeli opened and closed 18 companies used to operate the Ziggie’s chain. Once a company accumulated a large sum of debt with the IRS, he would cease operating it and open a new entity, often in the name of a family member, partner or employee. However, he continued to maintain custody and control of the restaurant chain.
For each of the companies, he withheld federal income taxes and Social Security and Medicare taxes from his employees’ pay without their knowledge.
He instead used the money to gamble and purchase vacations and vehicles, including three BMWs, two Cadillac Escalades, two Infiniti QX56s, a 2009 Mercedes, a 2008 Acura and a 2004 Land Rover, according to the release.
Under the terms of his guilty plea, Zendeli must pay the federal government $1.33 million in restitution, as well as statutory interest.
According to the release, Zendeli also attempted to avoid paying $654,260 in past due state and federal employment taxes by filing bankruptcy in March 2010. Prior to filing bankruptcy, Zendeli transferred the Ziggie’s name to his father, which later was determined as a fraudulent transfer of assets, according to the release.
In the wake of the bankruptcy case, Gordon Elliott of Elliott Lodging Ltd.
bought the licensing rights to the Ziggie’s name. At that time, the rights had been held by Yummy Foods Inc., Ziggie’s parent company operated by Zendeli and his father, Zulbehar Zendeli, the chain's founder.
Ziggie’s restaurants continue to operate at the Lamplighter Inn & Suites, 1772 S. Glenstone Ave., Best Western Plus Coach House hotel, 2535 N. Glenstone Ave., and at 2129 W. Republic Road.
Zendeli changed the name of the 2222 S. Campbell Ave. restaurant to Springfield Family Restaurant, according to the secretary of state’s website. Marked as “fictitious active” on the site, Zendeli is listed as the owner.
Federal statutes dictate Zendeli could receive up to five years in federal prison without parole, plus a $250,000 fine. A sentencing hearing will follow the presentence investigation by the U.S. Probation Office, according to the release.
