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Old Port Lobster Shack owner Russell Deutsch has pleaded no contest to felony tax evasion and grand theft and faces a sentence of up to one year in county jail — an agreement the presiding judge called “lenient.”

Deutsch, who operated the seafood restaurants in Portola Valley, Redwood City and San Jose, entered the plea in late February, according to the San Mateo County District Attorney’s Office. He had been facing a March 16 trial date.

Judge Susan Greenberg said the “lenient” deal was based on Deutsch’s age, “significant” health issues and lack of any criminal history, according to the DA’s office.

The district attorney’s office had asked for three years and four months in state prison.

In March 2016, Deutsch, a Portola Valley resident, initially pleaded not guilty to charges of tax evasion, grand theft and fraud, including allegedly failing to pay $950,628 in sales taxes owed to the state over eight years. During a search of his home at the time, investigators found over $600,000 in cash, according to the district attorney’s office. A defense motion to return the cash found at his home was denied in 2018.

Deutsch remains out of custody on $290,000 bail. He will be sentenced on June 10.

Deutsch opened the first Old Port Lobster Shack in Redwood City in 2006 and later expanded to Ladera, Napa and San Jose. The Ladera location and a relocated outpost in Redwood City remain open.

Old Port Lobster Shack owner Russell Deutsch has pleaded no contest to felony tax evasion and grand theft and faces a sentence of up to one year in county jail. Embarcadero Media file photo of Stanford Shopping Center Old Port Lobster pop-up.
Old Port Lobster Shack owner Russell Deutsch has pleaded no contest to felony tax evasion and grand theft and faces a sentence of up to one year in county jail. Embarcadero Media file photo of Stanford Shopping Center Old Port Lobster pop-up.

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6 Comments

  1. He might get 1 year for being dishonest, yet those with small businesses will loose everything due to no fault of their own.
    How fair is that ??

  2. Because of his age? He’s only 60! Hoarding over half a million in his garage while not paying his taxes, he gets a year in jail, which he won’t even serve given that, due to COVID, all nonviolent offenders in the San Mateo County Jail have been released? Maybe some community service is in order so that he can learn about giving back. He has a very nice family, and he has humiliated them. I think he should show some real remorse.

  3. Thank heavens we had ALPR’s so we could catch criminals like this!

    Did they get him for any of his wage theft from his employees? He should be in the joint for *years*.

  4. Everyone is all high and mighty, holier than thou. He committed a crime, owned up to it, and deserves a second chance.

    Let’s keep it positive and hope he is able to keep the restaurant open and his family together. It’s a friendly spot.

  5. John
    Yeah, and maybe one day he’ll become POTUS

    And how do you figure he owned up to it? He got found out, caught.

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