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    MetroNewsNow

    Council Bluffs bar owner and wife arrested for suspected tax evasion of $1.4 Mil.

     

    Council Bluffs, Ia --  This morning members of the Council Bluffs Police Department, along with investigators from the State of Iowa's Department of revenue and the states Alcoholic Beverage Division served 22 search warrants on two Council Bluffs bars. Bier Fest (Formally know as the Cube Ultra Lounge at 162 West Broadway) and Rodeo Saloon & BBQ at 164 West Broadway.

    Authorities suspect owner of these businesses, Frank Hoover of committing tax fraud. Cindy Hoover, Frank's wife is the owner of Broadway Properties LLC. which owns the buildings in which the two bars operate. since 2017 The Iowa Department of Revenue has not received personal individual income tax filings for either Frank or Cindy Hoover, and no corporate filings for the Cube Ultra Lounge, Rodeo Saloon & BBQ or Broadway Properties. 

    The investigation has also determined that Frank Hoover has under-reported more than 1.4 million dollars in sales revenue to the State of Iowa, for the two bars, since January of 2018.

    An additional search warrant was served this morning at the hoovers personal residence. In the 300 block Perrin Place. After being questioned by investigators both Frank and Cindy Hoover were arrested and booked into the Pottawattamie County Jail. Both were charged with (On-going Criminal Conduct) a Class - B felony. Along with various tax evasion and reporting violations.

    Metro News Now sources have also told us that some employees may not of been paid for some time. Our sources also told us no income taxes or FICA had possibly been paid for employees. If the employees are not sub-contractors and If that's true, other charges could stem from that.

    At the time of this article, Frank and Cindy Hoover appeared to of made bail.

    Tax evasion is a felony. The maximum prison sentence is five years; the maximum fine is $100,000. (Internal Revenue Code § 7201.)

    The average jail time for tax evasion is 3-5 years

    this is an on-going investigation, anyone having additional information or knowledge of the situation can call the Council Bluffs Police Department at 712-328-4728. The hoovers are innocent until proven guilty beyond a reasonable doubt.

     

    Images after the raid
    Images are property of Metro News Now and our Brand Council Bluffs Scanner

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