Crime & Safety

Nifty Fifty's Owners Charged with Tax Evasion

Between 2006-2010, it is alleged they failed to account for $15.6 million in gross receipts, thereby evading $2.2 million in federal employment and personal taxes.

Owners of a popular local restaurant chain are in tax trouble.

The owners and managers of were charged today in a tax evasion conspiracy that cheated the Internal Revenue Service by failing to properly account for more than $15 million in gross receipts.

One of the restaurants is located at 2555 Street Road, Bensalem.

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According to a release, five individuals were charged with conspiracy to commit tax evasion, and tax evasion, for allegedly constructing a long-running scheme to avoid paying millions of dollars in personal and employment taxes as related to their restaurant chain.

Charged were:

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  • Robert Mattei, 73, of Del Ray Beach, Florida
  • Leo McGlynn, 52, of Swarthmore
  • Brian Welsh, 48, of Springfield
  • Joseph Donnelly, 49, of Springfield
  • Elena Ruiz, 46, of Drexel Hill

Mattei, McGlynn, Donnelly, and Welsh are also charged with bank fraud; and McGlynn and Donnelly are also charged with aggravated structuring of financial transactions.

Authorities said the defendants have evaded paying taxes since the restaurant was established in 1986 by, among other things, paying employees a portion of their wages with unreported cash in order to evade payroll taxes; paying suppliers with unreported cash; and having false tax returns prepared that under-reported income and falsely inflated expenses and deductions. 

Between 2006-2010, it is alleged the defendants deliberately failed to properly account for $15.6 million in gross receipts, thereby evading $2.2 million in federal employment and personal taxes.

“Owning your own business is part of the American dream. But with that dream comes responsibilities, including paying your fair share of federal taxes,” said United States Attorney Zane David Memeger. “It is alleged that these defendants conspired to disregard their responsibilities, to the tune of over $15 million, so they could enrich themselves at the expense of all the hardworking Americans who follow the rules and pay their taxes.”

It is further alleged that in the course of their conspiracy, defendants Mattei, McGlynn, Donnelly, and Welsh committed bank fraud by submitting to the bank bogus income tax returns in order to secure several business loans; and that defendants McGlynn and Donnelly structured numerous cash deposits of undeclared income into a bank account in an effort to avoid federal reporting requirements.

“The charges announced today are the result of a lengthy and complex financial investigation involving Nifty-Fifty restaurants,” said Acting Special Agent-in-Charge of IRS-Criminal Investigation Akeia Conner. “These charges summarize a scheme in which millions of dollars in income were skimmed from a successful business in order to evade paying taxes on the income." 

If convicted, the defendants face maximum sentences of between 10-50 years, fines of up to $500,000-$2 million, full restitution to the IRS and more.


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