Former Ziggie’s owner headed to prison for tax scheme

The former owner of the Ziggie’s restaurant chain is going to prison for failing to pay more than $1.3 million in federal payroll taxes.

Agim Zendeli, 43, was sentenced yesterday to three years and one month in federal prison without parole and ordered to pay $1.3 million in restitution to the IRS, according to a news release from the office of Tammy Dickinson, U.S. attorney for the Western District of Missouri.

Zendeli operated Ziggie’s restaurants 1998-2014 in Springfield, Republic, Willard, Marshfield, Nevada, West Plains, Rolla, Carthage and Poplar Bluff, as well as Fort Scott and Pittsburg in Kansas.

Between March 2004 and December 2014, he opened and closed 18 companies he formed to operate Ziggie’s. When one company accumulated a large tax debt owed to the IRS, he would cease operating under that name and open a new entity, often using the name of a family member, partner or employee. However, Zendeli continued to operate the chain, according to the release.

During that time, Zendeli withheld $741,099 in payroll taxes he deducted from employees’ pay, as well as required contributions to Social Security, Medicare and unemployment taxes.

He used the money for personal expenditures, including vacations, gambling trips, entertainment, and such luxury vehicles as three BMWs, two Cadillac Escalades, two Infiniti QX56s, a 2009 Mercedes, a 2008 Acura and a 2004 Land Rover, according to the release.

In March 2010, Zendeli attempted to avoid paying $654,260 in past due federal and state employment taxes by filing bankruptcy. Prior to the filing, Zendeli transferred the Ziggie’s name to his father, which later was determined as a fraudulent transfer of assets.

After the bankruptcy, Gordon Elliott of Elliott Lodging Ltd. purchased the licensing rights to the Ziggie’s name. 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 one Ziggie’s restaurant at 2222 S. Campbell Ave. to Springfield Family Restaurant. The restaurant owned by Zendeli is still in operation.