SEATTLE — The owner of Single Shot Saloon, a restaurant in Seattle’s Capitol Hill, pleaded guilty Monday to willfully failing to pay more than $1.4 million in unemployment, Social Security, and Medicare taxes, with some of which being withheld from employee paychecks.
Ruadhri “Rory” McCormick, 44, owned and operated the restaurant and is currently facing up to five years in prison when sentenced on Oct. 5, the U.S. Department of Justice (DOJ) announced.
Capitol Hill business owner withheld payroll taxes from workers but kept the money, prosecutors said
Between 2014 and 2024, McCormick employed as many as 87 people, with positions including servers, bartenders and cooks. McCormick withheld payroll taxes from employee paychecks, kept the money, and failed to pay it to the Internal Revenue Service (IRS).
“Mr. McCormick’s employees trusted him with their tax withholdings. Little did they know that Mr. McCormick took advantage of this trust and kept over $1 million of these funds for himself,” said Special Agent in Charge Carrie Nordyke, IRS Criminal Investigation, Seattle Field Office. “Employers have an obligation to their employees to do the right thing. Today’s guilty plea is a step toward justice for those harmed by Mr. McCormick’s criminal actions.”
For 36 quarters between 2014 and 2024, McCormick failed to pay $1,027,362 in payroll taxes that had been withheld from employee paychecks. McCormick also didn’t pay the employer portions of Social Security taxes, Medicare taxes, and federal unemployment taxes, totaling more than $400,000, bringing his total tax loss to $1,446,341.
McCormick has agreed to repay the full amount to the IRS
McCormick agreed to pay the full amount as restitution to the IRS. Additionally, McCormick admitted in his plea agreement that he failed to file his personal income taxes for any tax year from 2015 through 2024.
Prosecutors agreed to recommend no more than 15 months in prison in the plea agreement, though the recommendation is not binding on the judge, and any sentence allowed by law can be imposed.
Willful failure to pay taxes is punishable by up to five years in prison and a $250,000 fine.
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