John Zelopoulos, Tax Evasion & Structuring, Connecticut 2015

Grimy Times has learned that John Zelopoulos, 49, of North Stonington, was sentenced to 12 months and one day in federal prison for tax evasion and structuring cash transactions.

According to court documents, Zelopoulos is the sole owner of Mystic Pizza, LLC, a Schedule C retail restaurant business in Mystic, Connecticut.

Between 2006 and 2010, Zelopoulos diverted approximately $567,435 in cash from Mystic Pizza's gross receipts.

He then deposited the cash into his personal bank account, his and his wife's personal checking account, his wife's personal checking account, and passbook savings accounts in the name of each of his three minor children.

Zelopoulos also caused Mystic Pizza to pay a total of $162,168 to two 'no-show' employees who performed no work for the restaurant.

He then deducted the wages as expenses on his tax return's Schedule C for Mystic Pizza, resulting in a federal tax loss of $234,407.

Zelopoulos has paid restitution in that amount, but still is required to pay interest and substantial penalties.

The U.S. Attorney for the District of Connecticut and the Special Agent in Charge of IRS Criminal Investigation in New England announced the sentencing.

On March 31, 2015, Zelopoulos waived his right to indictment and pleaded guilty to one count of tax evasion and one count of structuring financial transactions.

ZELEPOS was ordered to forfeit $522,658 as a result of his illegal structuring.

On January 2012, the IRS seized $63,084.49 from a payroll account Mystic Pizza held at Chelsea Groton Bank.

Those funds are being applied to the forfeiture, reducing the remaining forfeiture amount to $459,573.51.

Zelopoulos was ordered to report to prison on October 30, 2015.

This matter was investigated by the Internal Revenue Service - Criminal Investigation Division.

The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

ZELEPOS also was ordered to pay a $25,000 fine.

Zelopoulos is required to serve three years of supervised release after his prison sentence.

Defendant: John Zelopoulos

Criminal Charges: Tax Evasion and Structuring Financial Transactions

City and State: North Stonington, Connecticut

Date: October 30, 2015

Sentence: 12 months and one day in federal prison, $25,000 fine, 3 years supervised release, and forfeiture of $522,658

Source: https://www.justice.gov/usao-ct/pr/owner-mystic-pizza-sentenced-federal-prison-tax-evasion-and-structuring-cash-transactions