Broad Ripple business owners accused of tax evasion

INDIANAPOLIS (WISH) — Two business owners who own four bars in Broad Ripple are accused of hiding millions of dollars in cash from the Indiana Department of Revenue over a five-year period.

The basis of the accusations against the owners of these businesses boils down to the percentage of where they get their income. In a 64-page probable cause affidavit, investigators said businesses like these typically get 40% to 60% of their income from cash sales.

From 2019 to 2023, Robert Sabatini, the owner of Average Joe’s, Mineshaft Saloon, and Rock Lobster, is accused of having cash revenue well below the 40% threshold. That, combined with a lower than average profit margin on the drinks they sell, was a red flag, and set off alarm bells for investigators.

In total, he’s accused of hiding $4.6 million in cash during that time period, and not paying $416,000 in taxes on that money.

The other bar caught up in this investigation is Connor’s Pub.

John Yaggi, the owner of Connor’s Pub, is accused of doing the same thing. From 2019 to 2023, Yaggi allegedly hid $1.2 million in cash earnings, and did not pay $113,000 in taxes on that money.

In April, police raided the business and homes of the two businesses owners. They seized $5,985 in cash from Sabatini and $4,155 from Yaggi.

Right now, the case against Sabatini and Yaggi is listed as civil, but the probable cause affidavit sites a law saying withholding taxes is a felony.

In a statement, The lawyer for Sabatini and Yaggi told I-Team 8, “Mr. Sabatini and Mr. Yaggi vehemently deny the allegations contained within the State’s forfeiture complaint, and remain grateful for the outpouring of support they have received from the Broad Ripple bar and restaurant community. We look forward to litigating this case, and having the truth come to light.”

I-Team 8 spoke with another business owner in Broad Ripple about this investigation. The business owner didn’t want to go on camera, but they told I-Team 8 that they’re concerned about it because their business also doesn’t take in 40% of their income in cash, which is one of the metrics used to accuse Sabatini and Yaggi of hiding income.

They said their restaurant/bar is typically bringing in 90% of their income via card transactions.