Santa Clarita / Antelope Valley : Restaurant Chain Founder Faces Trial Over Tax Payments

The founder of a popular Antelope Valley-based Mexican restaurant chain was arraigned Monday on 37 felony counts of alleged payroll and reporting irregularities.

Armando L. Sanchez, a 38-year-old Granada Hills resident who founded the Taco Tec chain in 1988, now faces a trial set for Jan. 10.

During a hearing in Kern County Superior Court, Sanchez was briefly taken into custody when the company that had posted his $15,000 bond canceled it, saying he was delinquent on the property he had put up as collateral. But Sanchez was later released after paying the court $14,000 bail.

In June, Sanchez was charged with failing to make proper withholding payments to the state on behalf of Taco Tec workers at various outlets for state income taxes and unemployment and disability insurance. State officials have said Sanchez owes nearly $200,000 for 1992 and 1993.

Under a plea bargain offer that Sanchez rejected, he would have been guaranteed no more than one year in County Jail if he had entered a plea and made partial restitution of about $60,000. Now, Deputy Dist. Atty. C. M. Starr II said Sanchez faces up to six years in prison.

Bakersfield defense attorney Thomas Clark would not elaborate on why his client rejected the plea offer, other than to say, “He decided it was not in his best interest at this point in time.”

As to the threat of state prison, Clark said, “We understand that is a risk.”

Clark said Sanchez did make a $7,000 payment Monday to the state Employment Development Department, and plans to make several more payments of about $20,000 each, prior to trial. Clark also said the amount Sanchez actually owes the state “may be as low as $50,000.”