Russell Deutsch, the 57-year-old owner of Old Port Lobster Shack restaurants in Redwood City and Portola Valley and the Old Port Lobster Grill in San Jose, appears to be in some hot water with the state of California. He's pleaded not guilty to tax evasion charges in San Mateo County court, with the authorities claiming he underreported taxable sales at his three restaurants for eight years to the tune of almost $1 million, as CBS 5 reports.
Deutsch was found to owe $950,628 in back taxes to the state, and upon serving a search warrant, authorities discovered $600,000 in cash at Deutsch's Portola Valley home.
He was remanded into custody Tuesday following his plea, as the San Mateo Daily Journal reports, and he's being held on $950,000 bail.
Almanac News further reports that Deutsch recently opened a fourth restaurant, Rusty's Roadside Grill at the Ladera shopping center in Portola Valley. CBS 5 notes that he had plans to expand the Lobster Shack empire to Sacramento and Portland, Maine as well.