BOSTON – The sweet smell of roast beef couldn’t mask the stench of fraud at Nick’s Famous Roast Beef in Beverly, Massachusetts. Today, Nicholas Markos, 70, of Lynn, received one year of home confinement and a hefty $2,063,394 restitution order after admitting to a brazen six-year scheme to skim nearly $6 million in cash receipts from the popular eatery.
Markos, the co-owner, pleaded guilty in January 2017 to one count of conspiracy to defraud the United States by obstructing the IRS, and ten counts of aiding and assisting in the filing of false corporate and personal tax returns. The scheme, spanning 2008 to 2013, saw Markos and his partner systematically pocketing over $1 million in cash each year, deliberately keeping it off the books.
The operation was simple, if staggeringly dishonest. Each week, Markos and his business partner, Nicholas Koudanis, carved up the daily cash haul, deciding what to deposit, what to use for legitimate expenses, and, crucially, what to pocket for themselves. The IRS was left in the dark while the pair avoided nearly $1 million in personal income taxes. This wasn’t a momentary lapse; it was a calculated, sustained effort to cheat the system.
This isn’t a standalone case. In April 2017, Koudanis, his wife Eleni Koudanis, and their son, Steven Koudanis, all received sentences for their roles in the same scheme. Eleni Koudanis handled the bookkeeping, feeding false information to the tax preparer and even recruiting her son, Steven, to manufacture fake cash register receipts to throw off IRS audits. The real receipts? Conveniently omitted.
“This case demonstrates a deliberate and long-term effort to defraud the United States,” stated Acting United States Attorney William D. Weinreb. “The defendants attempted to conceal their income and evade their tax obligations, and today’s sentencing sends a clear message that such conduct will not be tolerated.” Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, echoed that sentiment.
Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit spearheaded the prosecution. While Markos avoids prison time, the hefty restitution order ensures he’ll be paying for his greed for years to come. The case serves as a stark reminder that even the most beloved local establishments can harbor dark financial secrets, and that the IRS is watching.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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