Rainbow Room Owners Plead Guilty to Tax Evasion

The Ciprianis evaded $10 million in city and state taxes.

January 08, 2009, 12:19 AM

July 31, 2007 — -- Famed restaurateurs Arrigo and Giuseppe Cipriani pleaded guilty today to evading $10 million in New York state and city taxes, the Manhattan district attorney's office said.

The Ciprianis, who operate the Rainbow Room in New York and other well-known restaurants in the city and Europe, will have to pay about $10 million in back taxes and will have an independent tax monitor at the family businesses until 2011. They will not serve any jail time, a spokeswoman for the district attorney's office said.

In addition to the Rainbow Room, the Ciprianis run Downtown Cipriani, Harry Cipriani and Cipriani Dolci.

Giuseppe Cipriani, president and CEO of Cipriani USA, pleaded guilty to misdemeanor tax evasion charges in New York Supreme Court for filing false tax returns.

His father, Arrigo Cipriani, is owner of Cipriani SA and overseas the family's restaurant business in Italy and the United States, according to the Manhattan district attorney. He pleaded guilty to felony tax charges.

Their lawyer, Stanley Arkin, didn't immediately return calls from ABC News. He told The Associated Press that the plea deal "allows the Cipriani family to put this incident behind them."

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