Owner of Bistro at Cherry Hill charged with tax fraud.
The owner of the Bistro at Cherry Hill, a staple at the Cherry Hill Mall for over 25 years, is facing legal troubles following his recent bankruptcy filing. Andrew Cosenza Jr., 57, has been indicted on charges of tax fraud, with the New Jersey Attorney General’s Office asserting that he failed to remit over 0,000 in sales tax collected from Bistro patrons during the years 2021 and 2022.
The indictment, announced on October 29, points to serious allegations regarding Cosenza’s business practices. The Attorney General remarked that tax compliance is a fundamental obligation of all business owners, emphasizing that such fraudulent activities will not be overlooked or tolerated by state authorities.
Cosenza’s legal challenges come on the heels of the Bistro’s abrupt closure this past summer, a decision he attributed to a “breakdown” in communication surrounding a Chapter 11 bankruptcy petition he had filed in May. This marked the second bankruptcy filing for the Bistro since 2017. Cosenza contended that while he faced health issues, the bankruptcy process unexpectedly converted from Chapter 11 to Chapter 7, allowing for asset liquidation without his approval. Upon discovering the closure, Cosenza’s brother attempted to open the Bistro only to find its doors locked.
In previous statements, Cosenza maintained that the Bistro’s financial difficulties were not due to mismanagement but were instead the result of lingering impacts from the COVID-19 pandemic. Despite these challenges, he asserted a commitment to addressing his debts and hoped to find a path forward for reopening the beloved establishment.
The Bistro’s bankruptcy case was ultimately dismissed in early October. Just days before the indictment, Cosenza expressed determination to revive the business, filing once again for Chapter 11 protection as a small-business debtor on October 15.
The indictment arises from a thorough investigation conducted by the New Jersey Division of Taxation’s Office of Criminal Investigation and the Division of Criminal Justice. Authorities discovered significant discrepancies between the gross sales tax amounts reported on Cosenza’s tax returns and those forwarded to the state.
Should he be convicted, Cosenza faces severe penalties, including potential prison time exceeding five years and substantial fines. The ongoing situation serves as a cautionary tale about the intricate balance of managing a small business while adhering to fiscal responsibilities. The future of both Cosenza and the Bistro hangs in the balance as the legal proceedings unfold.
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