Three members of a family that owns a small donut chain in central New York were sentenced this week to prison time for evading taxes by underreporting sales and paying workers off the books.
The Zourdos—John, his wife Helen and their son Dimitrios—were found guilty in November of dodging $2 million in federal tax payments in part by hiding $4.5 million in revenues at their three Dippin Donuts shops.
The court found that the trio diverted cash payments into their personal bank accounts and then failed to report the income to their accountants.
“They used unreported income to fund a lavish lifestyle that included multiple luxury vehicles, expensive watches, investment accounts and real estate,” the U.S. Department of Justice said in an announcement of the sentencing.
The Zourdos were also found guilty of dodging federal employment taxes by paying workers off the books in cash.
John Zourdos was sentenced to 30 months in prison, Helen Zourdos to 20 months and Dimitrios to 10 months.
They were also directed to pay the U.S. government $2 million in restitution and to serve three years of supervised time after their release.
The Zourdos’ doughnut shops were located in Rome and New Hartford, N.Y.
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