Dippin’ Donuts Owners Convicted Of Tax Evasion In Federal Trial
A Rome couple and their son have been convicted of tax evasion and conspiring to defraud the United States.
John Zourdos, his wife Helen and their son Dimitrios were found guilty during a federal jury trial in Utica.
The trio operated three Dippin’ Donuts stores in Rome and New Hartford.
The U.S Attorney's Office says from 2013 to 2017, the three concealed more than $2.8 million in cash sales from the IRS and evaded more than $650,000 in individual taxes by depositing cash directly into their personal bank accounts instead of business bank accounts.
Authorities also say they also provided incomplete information to their accountant, and causing their accountant to file false individual and corporate tax returns with the IRS.
They say the defendants also used unreported cash sales to fund a lavish lifestyle that included, among other things, the purchase of multiple luxury vehicles.
Evidence at trail further show that the defendants paid some employees "off the books" cash wages for overtime hours and paid other employees entirely "off the books" in cash for all hours worked.
John, Helen, and Dimitrios Zourdos were each convicted of one count conspiracy to defraud the United States, seven counts of tax evasion, and seven counts of aiding and assisting in the filing of false corporate tax returns.
All face a maximum penalty of up to five years in prison on each count of conspiracy and tax evasion, and three years in prison on each count of assisting the filing of false tax returns.
Sentencing hearings will be set for a later date.