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San Diego

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A federal grand jury Wednesday indicted the owner of the Nappy’s restaurant chain on two counts of income tax evasion.

Steven Tsemetzin, 52, of Valley Center is accused of avoiding payment of $133,000 in federal income taxes by failing to report personal income of $372,000 in 1979 and 1980. The income was derived from the operation of restaurants in San Diego, Los Angeles and Ventura counties, according to prosecutors.

The charges stem from a tax audit of Tsemetzin in 1982, Assistant U.S. Atty. Joan Weber said.

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Tsemetzin, who has promised to appear in court within two weeks for arraignment, denied the allegations in an interview Wednesday. “Whatever they’ve tried to say there is not true,” he said.

He owns six restaurants, including two in San Diego and one in Escondido.

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