October 22, 2014
LAS VEGAS (AP) - A former nightclub VIP host has been sentenced to two months in prison in connection with a $7 million tip-concealing scheme on the Las Vegas Strip.
The Las Vegas Review-Journal reports that U.S. District Judge Robert Jones also ordered 32-year-old Ali Olyaie to pay the government $29,196 in restitution for filing a false 2006 tax return.
Olyaie is one of five defendants who pleaded guilty in the tip scheme, which occurred at the Caesars Palace nightclub between 2005 and 2007.
Federal prosecutors say he hid the bulk of his tips, more than $256,000, from the Internal Revenue Service between 2005 and 2007.
Jones handed out a sentence eight months less than what prosecutors had recommended after Olyaie broke down in court and begged for leniency.