Tony Luke’s Cheesesteak Owners Plead Guilty to Tax Fraud Scheme

The owners of a landmark Philadelphia cheesesteak restaurant admitted their role in a decade-long payroll tax scheme the Justice Department estimates cost the government upwards of $1.5 million.

Anthony Lucidonio Sr. and his son Nicholas Lucidonio, owners of South Philadelphia restaurant Tony Luke’s, pleaded guilty Monday to conspiring to defraud the IRS, the DOJ said in a statement.

The Lucidonios paid employees a portion of their wages “off the books,” understating the hours they worked and paying the remainder in cash, according to evidence the Justice Department presented to the court.

“While they successfully misled their accountant, ...