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A second Broad Ripple bar owner has been charged with underreporting millions of dollars in sales following a tax investigation into nearly a dozen local establishments, the Marion County Prosecutor’s Office announced Tuesday.
Robert Sabatini faces multiple felony charges of failure to remit taxes at three bars in the north-side hamlet. He formerly owned Average Joe’s Sports Pub & Grub, 816 Broad Ripple Ave.; Rock Lobster, 820 Broad Ripple Ave.; and The Mineshaft Saloon, 812 Broad Ripple Ave. Steve Wentland and Itamar Cohen became owners of all three bars in October 2024.
Investigators allege Sabatini, between the three establishments, underreported sales by nearly $4 million, and failed to remit more than $279,000 in sales tax and more than $79,700 in food-and-beverage tax from 2020 to 2023, according to court records.
Multiple financial records were subpoenaed in September 2023, and in April 2024, search warrants were served at Sabatini’s home and at each of the bars, as well as his accountant’s office. Investigators seized bank statements, tax returns, receipts, balance sheets, schedules, laptops, and vendor and sales documents, among other materials.
A Department of Revenue analysis identified multiple indicators that Sabatini was underreporting sales at Average Joe’s: a low cost-of-goods-sold ratio for the number of employees and salaries paid; a recurring business loss; and a low percentage of cash deposits relative to overall sales.
The same indicators were present at Rock Lobster, according to court documents. At The Minecraft Saloon, investigators found that the business was reporting less than $10,000 a month in sales.
In all, Sabatini faces 27 Level 6 felony charges, including three counts of failure to keep records open for examination. Level 6 felonies each carry a maximum sentence of up to 2-1/2 years in prison and a fine of up to $10,000.
IBJ has reached out to Sabatini’s attorney for comment.
The charges are the result of a broader tax investigation that began in July 2023 and involved representatives from the Marion County Prosecutor’s Office Grand Jury Division, the Marion County Sheriff’s Office, Indiana State Police, Indiana State Excise Police and the Indiana Department of Revenue.
The initial investigation involved more than 10 Broad Ripple bars, but only four were examined further.
This is the second such case to emerge from the Department of Revenue investigation. Earlier this month, Marion County prosecutors announced charges against John Yaggi, the owner of Connor’s Pub, 6331 Ferguson St. Investigators allege Yaggi underreported sales by nearly $4.55 million and that he solicited sexual favors in exchange for giving an employee better-paying shifts.
“Broad Ripple Village is filled with local businesses who are willing to pay their fair share and are under the presumption that other establishments have the same commitment to equity,” Marion County Prosecutor Ryan Mears said in a written statement. “Unfortunately, the allegations uncovered in these two investigations illustrate a pattern of corruption that hinders the trust of patrons and the community alike.”
An initial hearing for Yaggi is scheduled for July 9, according to online records. An initial appearance has not been scheduled for Sabatini.
Editor’s note: This story has been updated to correct the address of Average Joe’s and to clarify that the establishments are under new ownership.
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Couldn’t they find a better way of negotiating this so that these establishments won’t close? This is type of non-tax reporting is usually something only unknowing immigrants do and it can’t be ignored but some settlement should have been arranged. A business that isn’t there any more won’t pay ANY taxes as they won’t be there to earn money to pay them.
They have new owners. And no negotiation should be done. We all pay our proper taxes, they should too.
So a new business will move in, and follow the rules. Did you know this guy or something?
This comes down to the lethargic pace of Adams Mears’ office trying to respond to the Marion County’s feckless governance of Broad Ripple during COVID. An under estimated sewer project on the heels of COVID lockdown brought bad actors to Broad Ripple. In Mears’ dalliance, he started attacking bars with good operators long after we resolved our own problems.
Sabbatini has run a fantastic operation for 30 years in Broad Ripple. Every bar in Marion County skims cash. It’s why you own a bar. Mears could pick any bar in the city. Instead, he’s late to game. Sabbatini’s bars changed ownership months ago. And, BRipp is on the ascent again.
We certainly won’t let the Prosecutor’s office bring Ripple any more shade. Hang in there, Rob. The Village has your back. And Ripple is rising again. Stronger than ever. See the rest of you on the strip. Summer is here. New Kilroy’s patio open. Thieves coffee and espresso bar just opened. Couple more big restaurant announcements imminent. See ya in BR.
Okay lol.
The argument being WHAT? He only shorted the taxing authorities by $360K and everyone does it??
Yeah, the Marion County prosecutor has a vendetta against…Broad Ripple LOL
A sewer project brought bad actors? What?
If they all skim they should all be prosecuted….
Neil and Ryan must be paid influencers. Lol
No wonder those bars continued to be less relevant, stagnant, and gross. They could have claimed all that revenue and actually invested back into the building for write of purposes and still had less taxes to pay….but greed always takes priority with most of these owners, instead of making a better establishment. Status quo is always okay for them.
And, of course, you’re assuming he owned the buildings the bars were housed in…
Sabbatini didn’t own the building that any of his three bars resided in. Further, he was never late for a single rent payment in 30 years.
Did he pay in cash or by check?
You don’t have to be an owner to reinvest in your business dingbat! Look at all the other chains, retails, mom pop business that rent or lease their space but still invest in making them look good, stay clean, not smell, dust decorations that have decades of dust and ahhhh good forbid spruce up the place. Just because someone leases a shell doesn’t mean they cant invest in the space.
I like all of these investigations into BR bars. Either pay your fair share or leave. Choices have consequences.
If only Mears was as concerned about keeping violent criminals off the streets vs worried about something they likely can’t prove and will just strong arm for the benefit of the government!
Rob is a great guy He will be fine. They will twiddle down an agreement that both can live with and Mears gets his clicks