Lenny's Burger chain founder pleads guilty to tax evasion

Posted at 8:37 AM, Apr 26, 2022
and last updated 2022-04-26 11:37:14-04

The founder of the Lenny’s Burger restaurant chain in the Valley has pleaded guilty to one count of tax evasion, after underreporting income from the business over several years on his federal tax returns.

As part of a plea agreement, Leonard Fleszar will pay restitution to the IRS for taxes due owing for 2014, 2015, 2016, and 2017, related to two Lenny’s locations in Phoenix and Glendale, which he subsequently sold to Bill Naylor, who now operates the six Lenny’s restaurants in the Valley, according to the company's website.

Court documents show that for tax year 2017, Fleszar underreported his taxable income from the two restaurants by $605,630, resulting in a tax loss to the IRS of $195,031 that year. In his plea agreement, Fleszar said he had previously underreported his taxable income in the tax years 2014 through 2016 by a total of more than $1.3 million.

Read more of this story from the Business Journal.