New York Donut Store Operators Convicted of Tax Evasion | Takeover bid

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A federal jury in Utica, New York, today convicted a New York couple and their son of conspiracy to defraud the United States and of tax evasion.

According to evidence presented at trial and court documents, John Zourdos, his wife Helen Zourdos and their son Dimitrios Zourdos, all of Rome, New York, operated three Dippin Donuts stores with locations in Rome and New Hartford. From 2013 to 2017, defendants withheld over $ 2.8 million in cash sales from the IRS and evaded over $ 650,000 in individual taxes, depositing money directly into their personal bank accounts instead of business bank accounts, providing incomplete information to their accountant and forcing their accountant to file false personal and corporate income tax returns with the IRS. The defendants also used undeclared cash sales to fund a lavish lifestyle that included, among other things, the purchase of several luxury vehicles. Evidence at trial further showed that the defendants paid some employees “unofficial” cash wages for overtime. They paid other employees entirely “informally” in cash for all hours worked.

John, Helen and Dimitrios Zourdos were each convicted of one count of conspiracy to defraud the United States, seven counts of tax evasion and seven counts of aiding and assisting in the filing of false claims corporate tax. Sentencing hearings for the three accused will be scheduled at a later date. All face a maximum sentence of five years in prison for each count of conspiracy and tax evasion, and three years in prison for each count of assisting in filing false tax returns. A federal district court judge will determine any sentence after considering US sentencing guidelines and other statutory factors.

Acting Assistant Deputy Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division and US Attorney Carla B. Freedman of the Northern District of New York made the announcement.

The IRS-Criminal Investigation investigated the case.

Deputy Chief Tax Officer John N. Kane and Deputy US Attorney Michael F. Perry for the Northern District of New York are continuing the case.


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