George Despotopoulos, Steve Tepelidis, Tax Evasion, New York 2007

Grimy Times Exclusive: Local Business Owners Caught Cheating on Taxes

Two local business owners have been caught red-handed in a tax evasion scheme, prosecutors announced today. George Despotopoulos and Steve Tepelidis, co-owners of Furniture Design by Knossos, a custom furniture and cabinetry business, pleaded guilty to tax evasion in the Eastern District of New York.

According to court documents, Despotopoulos and Tepelidis caused business checks to be cashed and used some of the cash to supplement their reported income. The informations allege that Despotopolous and Tepelidis filed or caused to be filed false individual income tax returns for the 2007 tax year.

The pair has agreed to pay over $300,000 each in restitution, bringing the total amount to a staggering $600,000. Tax evasion carries a statutory maximum sentence of five years in prison, three years of supervised release, and a $250,000 fine.

IRS-Criminal Investigation special agents worked tirelessly to crack the case, gathering evidence and building a strong case against the defendants. Trial Attorney Jennifer Laraia of the Tax Division will now handle the prosecution.

Despotopoulos and Tepelidis’ actions not only cheated the government out of rightful taxes but also undermined the trust of their customers and the community at large. The guilty plea is a major victory for law enforcement and a reminder that tax evasion will not be tolerated.

Grimy Times will continue to follow this story and provide updates as more information becomes available.

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