Former Pepe's Owner Sentenced To 15 Months Prison For Tax Evasion

JOLIET, IL — Juan Hurtado, the owner of five Pepe's Mexican Restaurant franchises who pleaded guilty to filing false corporate tax returns, has been sentenced to more than a year in federal prison, the Attorney General's office said in a statement Thursday.

Hurtado, 45, owned five franchise locations of the popular restaurant in Chicago, Tinley Park, Hickory Hills, Matteson and Chicago Heights. In a plea agreement, Hurtado said he underreported about $2.5 million in sales since 2016.

Hurtado further admitted that he created false sales reports and gave them to his accountants, knowing the reports would be used to underreport the restaurant's receipts and sales.

The Joliet native was sentenced to 15 months in federal prison in addition to being fined $45,000. He could have been sentenced up to three years.

"Defendant engaged in this conduct solely out of greed," Assistant U.S. Attorney Rick D. Young said during sentencing. "He wanted more money for himself at the expense of other taxpayers who pay their fair share of taxes."