New Canaan businessman gets a year in prison for tax evasion

A New Canaan businessman who owned New York City restaurants was sentenced Monday, Oct. 7 to one year in prison for his part in a tax evasion scheme.

Vishal Dhar, 56, of New Canaan, was sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by two years of supervised release, for tax evasion, according to a statement from U.S. Attorney for the District of Connecticut Vanessa Roberts Avery. He pled guilty to the charge on May 23.

According to court documents and statements made in court, Dhar formed and operated various entities, including Grey Brown Inc. (a holding company for several restaurants operating under the name “Oaxaca Taqueria”), West Partners, Inc., and NY Cloud Kitchens, LLC.  From about October 2013 through August 2023, Dhar willfully failed to disclose to the Internal Revenue Service significant income from his business and gifts from family members, Avery said.

Instead of paying his outstanding tax liabilities, Dhar paid off personal and business debts, invested in a new business venture, and paid various personal expenses.  In evading his payment of taxes owed, Dhar used financial accounts in the names of entities and other individuals rather than in his own name, paid personal expenses with corporate funds, and omitted significant assets on IRS forms.

In addition, in the bankruptcy case involving Grey Brown Inc., filed in the Southern District of New York, Dhar failed to disclose the receipt of an employee retention credit check in amount of $254,203.01 made payable to Oaxaca Atlantic Avenue LLC, which is based in Brooklyn, New York.  That credit is refundable for certain eligible businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic.

For the 2011 through 2020 tax years, Dhar owed $272,390.07 in back taxes, penalties, and interest.  Dhar has paid full restitution to the IRS.

Dhar, who is released on bond, is required to report to prison on Feb. 12, 2025.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorney David T. Huang.