Former Rockford restaurant owner and bookkeeper accused of cheating state out of more than $100K in sales taxes

ROCKFORD, Ill. — Felony charges have been filed against the former owner of a Rockford restaurant and its bookkeeper after they allegedly defrauded the state out of more than $100,000 in sales taxes over a four-year period.

James Vitale, a 74-year-old Belvidere resident, and Lori Rice, a 52-year-old Rockford resident, have each been charged with four counts of theft of governmental property over $100,000, one count of sales tax evasion, one count of filing a fraudulent sales tax return and two counts of forgery, Attorney General Kwame Raoul announced Monday.

The charges were handed down following an investigation by the Illinois Department of Revenue (IDOR) Criminal Investigation Division.

Prosecutor said Vitale owned the Stone Eagle Tavern, which had locations in Rockford and Hoffman Estates, and Rice worked as the restaurant’s bookkeeper during the course of the alleged scheme.

According to Raoul, between January 2016 and September 2020, Vitale and Rice allegedly cheated the state out of more than $100,000 in sales taxes by underreporting sales at the restaurant.

Vitale and Rice appeared in court on Friday, where they both pleaded not guilty to all charges against them.

If convicted, both Vitale and Rice could each face up to 30 years in prison on the charge of theft of governmental property alone.

“Individuals who intentionally violate Illinois’ tax laws are stealing from their friends and neighbors,” Raoul said. “I appreciate the continued partnership with the Illinois Department of Revenue as we work together to send the message that stealing from the people of Illinois will not be tolerated.”

Vitale and Rice are set to return to court on Dec. 18. 2025.

Raoul did not provide booking photos for either of the suspects charged.