UTICA, N.Y. — A federal jury in Utica on Wednesday convicted the owners of Dippin Donuts and their son for conspiring to defraud the U.S. and for tax evasion.
John Zourdos, his wife Helen Zourdos, and their son Dimitrios Zourdos, all of Rome, operated three Dippin Donuts stores with locations in Rome and New Hartford, per a U.S. Department of Justice (DOJ) news release.
From 2013-2017, the Zourdoses concealed more than $2.8 million in cash sales from the IRS, and evaded more than $650,000 in individual taxes, by depositing cash directly into their personal bank accounts instead of business bank accounts, the DOJ said.
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They also provided “incomplete” information to their accountant, resulting in their accountant filing “false” individual and corporate tax returns with the IRS.
The accused also used unreported cash sales to pay for a “lavish lifestyle” that included the purchase of multiple luxury vehicles, the DOJ contends.
Evidence at trial further indicated that the Zourdoses paid some employees “off the books” cash wages for overtime hours. They paid other employees entirely “off the books” in cash for all hours worked.
John, Helen, and Dimitrios Zourdos were each convicted of one count conspiracy to defraud the U.S., seven counts of tax evasion, and seven counts of aiding and assisting in the filing of false corporate-tax returns.
Sentencing hearings for all three defendants will be scheduled at a later date.
The Zourdoses face a maximum penalty of five years in prison on each count of conspiracy and tax evasion, and three years in prison on each count of assisting the filing of false tax returns.
A federal district court judge will determine any sentence after considering the U.S. sentencing guidelines and other statutory factors, the DOJ said.
