Traverse City restaurant owner charged with four felonies for taxes

Michigan Attorney General Bill Schuette announced Tuesday that he has filed four felony charges against Keil Moshier, 50 of Traverse City, for allegedly collecting but failing to file tax returns for his restaurant MI Grille (formerly Bay Town Kitchen) in Traverse City.

"Ownership of any business comes with the responsibility to file taxes in good faith. Whether operating a restaurant, retail shop or manufacturing plant, the law applies to every owner equally," said Schuette. "I would like to thank the Department of Treasury for their hard work and cooperation in this joint investigation."

Schuette filed the following charges against Moshier in Eaton County's 56A District Court: Four counts of Failure to File Michigan Sales and/or Withholding Tax, a felony punishable each by a maximum term of five years and a fine up to $5,000.

Moshier was arrested on Sunday, July 23, and held pending arraignment. Moshier was arraigned Tuesday, July 25, in the 56A District Court.

A $5,000 personal recognizance bond was set. His next court appearance is a probable cause hearing in Eaton County's 56A District Court before Judge Julie Reincke on Monday, Aug. 7.

Moshier was charged after a joint investigation by the Department of Attorney General and the Department of Treasury.

Between 2012 and 2016, Keil Martin Moshier owned and operated a restaurant named Bay Town Kitchen, then re-named MI Grille, out of Traverse City. During that period, Moshier allegedly collected sales tax from customers totaling more than $69,000, but allegedly did not file returns as required by law.

Likewise, during that same time frame, Moshier allegedly withheld Michigan income taxes totaling more than $19,000 from his employees through claimed payroll deductions, but allegedly did not remit those withholdings to the Michigan Department of Treasury, whose operations are located in Eaton County.

During the investigation, it was also learned that Moshier was operating his restaurant without a sales tax license. It is alleged that he was collecting sales tax from customers as though he were, but did not remit payments to Treasury as required by law. Requests for Moshier to provide his sales tax license were ignored. In addition to the sales tax Moshier did not report, he is also alleged to have failed to make payments which were withheld from employee income.

In total Moshier allegedly owes over $88,000 in tax deficiencies beginning in 2012 and lasting through 2016.

Published: Fri, Jul 28, 2017