Nikita Yanakopulos, 40, the former owner of Pinky’s Famous Pizza in Medford, Massachusetts, pleaded guilty yesterday to two counts of aiding and assisting in the filing of false Forms 941, the federal government’s quarterly tax return used to report employee withholdings for income, Social Security, and Medicare taxes.
Yanakopulos ran the Medford pizzeria from approximately 2000 to 2016, during which time he paid some employees by check and others entirely in cash. He directed his payroll service to file tax returns that included only wages paid by check — systematically excluding cash payments totaling approximately $675,000.
By failing to report the cash payroll, Yanakopulos dodged federal tax obligations, including FICA, Medicare, and income tax withholdings, amounting to roughly $172,000. The deception left the IRS shortchanged and violated core federal employment tax laws meant to ensure fairness across the workforce.
Each count of aiding and assisting in the filing of false tax returns carries a maximum penalty of three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentencing is scheduled for May 22, 2018, before U.S. District Court Judge Richard G. Stearns.
The case was announced by United States Attorney Andrew E. Lelling and Joel P. Garland, Special Agent in Charge of the IRS Criminal Investigation unit in Boston. Prosecution is being handled by Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Economic Crimes Unit.
Yanakopulos’s guilty plea underscores a pattern of financial misconduct hidden in plain sight — behind the ovens and delivery routes of a neighborhood pizza joint. The federal government is sending a clear message: wage theft and tax evasion, even in small businesses, carry steep consequences.
Related Federal Cases
- Topsfield Attorney John H. Molloy Jr. Sentenced in Tax Fraud Scheme · Massachusetts
- Dracut Attorney John F. Paczkowski Pleads Guilty to Tax Fraud · Massachusetts
- Andrew R. Bisignani Pleads Guilty to Tax Fraud · Massachusetts
- Boston Cab Owner Tutunjian Cops to Tax Evasion, Wage Fraud · Massachusetts
- Lydia Torres Sentenced in $393K Identity Theft Tax Fraud · Massachusetts
Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News