Panousos Family, Tax Evasion, Massachusetts 2024

BOSTON, Mass. – In a brazen scheme, the owners of Giovanni’s Roast Beef & Pizza in Peabody skimmed an astonishing $2.8 million in cash receipts from their business over three tax years, using the funds for personal gain and to pay some of their expenses, including employees’ salaries.

The masterminds behind the massive tax evasion scheme were William Panousos, 67, his wife Theodora Panousos, 65, and their son Konstantinos Panousos, 39. The trio pleaded guilty to various tax-related charges in November 2017 and were handed down their sentences in federal court.

U.S. Senior District Court Judge Douglas P. Woodlock sentenced each of the defendants to three years of probation, with the first 18 months confined to the City of Peabody. In addition to the lengthy probation period, the judge also ordered the defendants to pay a fine of $150,000 and restitution of $549,883 to the IRS.

The Panousos family’s scheme involved skimming cash receipts from Giovanni’s from 2013 to 2015 and using the funds for personal gain, with approximately $1.5 million being diverted for their own use. They also used some of the skimmed cash to pay business expenses, including supplier payments and employee salaries, but failed to report those expenses on their tax returns.

Assistant U.S. Attorney Mark J. Balthazard, who prosecuted the case, stated that the defendants’ actions were a blatant disregard for the law and a significant betrayal of the public’s trust. The case was announced by United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston.

The Panousos family’s scheme highlights the importance of tax compliance and the severe consequences of tax evasion. It also serves as a reminder that no one is above the law, and those who engage in such schemes will be held accountable.

The case is a stark reminder that tax evasion will not be tolerated and those found guilty will face severe consequences. The Panousos family’s actions were a brazen betrayal of the public’s trust, and their punishment serves as a warning to anyone who would consider similar schemes.

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