Third Sawa Sushi Employee Admits Failing To Pay Taxes

A third employee of the Sawa Sushi Asian restaurants in Long Branch and Eatontown has admitted to failing to pay taxes, according to a release from the U.S. Attorney's Office.

Peter J. Wagar, 50, of Colts Neck plead guilty to subscribing to false personal federal income tax returns and to fraudulently securing Social Security disability and child's insurance benefits for himself and his children while working at Sawa. Wagar plead guilty today before U.S. District Judge Claire C. Cecchi in Newark Federal Court.

Tung also pleaded guilty to one count of harboring unlawful aliens he employed at his Sawa located at 42 Route 36, Eatontown.

Chang is the manager of the other Sawa located in Pier Village at 68 Ocean Ave., Long Branch.

Wager was a partner and manager of the Eatontown Sawa and the general manager of the Long Branch Sawa.

From Sept. 2006 through Sept. 2009, Wagar was paid cash in bonuses of $186,317 and made about $100,000 from the sale of his ownership stake of the Eatontown Sawa, according to the release. Wagar reportedly never disclosed this income to the IRS.

Wagar also failed to report his employment or income to the United States Social Security Administration (SSA). He and his children had been receiving disability and child's insurance benefits from the SSA since 1997.

In 1998, Wagar claimed he was disabled and unable to work because he suffered from visual impairments and glaucoma. However, he never reported his employment at Sawa to the SSA.

The benefits Wagar and his children received from the SSA totaled $56,960 from from 1997 through today.

The tax charge to which Wagar pleaded guilty carries a maximum potential penalty of three years in prison and a $100,000 fine. The Social Security charge to which Wagar also pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, according to the release.

Wagar is scheduled to be sentenced on Dec. 20. Tung and Change are scheduled to be sentenced on Nov. 9.

Related Topics: Sawa Sushi