The president of a popular chain of sports cafes in North Carolina has admitted to a multi-million dollar embezzlement scheme. Raed Abdel Karim Amra, who ran Tobacco Road Sports Cafés across the state, pleaded guilty to embezzling over $1.7 million in sales tax. Operating through entities such as ARR Entertainment, Inc., IEAT LLC, and TRSC-Chapel Hill, Amra's restaurants failed to remit collected sales tax between October 2012 and December 2019. This information has been revealed following proceedings in Wake County Superior Court, as reported by the North Carolina Department of Revenue.
During his court appearance yesterday, Judge Paul Ridgeway handed down multiple suspended prison terms to the 49-year-old Apex resident, which could total up to 32 months. The conditions highlighted by the court include house arrest for the initial year of a supervised five-year probation. Despite the businesses under his leadership, keep in trust and being under a duty to collect and remit these funds, Amra was found to have misapplied and converted the money for personal use.
In lieu of serving time immediately, Amra has been ordered to serve 150 days within the custody of the North Carolina Division of Adult Correction, staggered in 30-day intervals throughout the next 12 months. Restitution appears to be in motion as well, with Amra having paid $1 million prior to admitting guilt, and is expected to pay the remaining balance over the course of his probation period.
This case was brought to light by the North Carolina Department of Revenue's Criminal Investigations Division, and further handled by the Attorney General’s Special Prosecutions office.
