Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
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.
Please enable JavaScript to view this content.