Utica, N.Y. — The owners of a popular Central New York donut shop were sentenced to prison Wednesday after they were convicted for concealing $4.5 million in cash sales, federal prosecutors said.
Rome residents John Zourdos, 69, his wife Helen Zourdos, 65, and their son Dimitrios Zourdos, were found guilty in November 2021 by a federal trial jury in Utica of conspiring to defraud the United States and for tax evasion, according to a news release issued by the U.S. Attorney’s Office for the Northern District of New York.
John Zourdos was sentenced to 30 months, Helen Zourdos was sentenced to 20 months and Dimitrios Zourdos was sentenced to 10 months by U.S. District Court Judge David N. Hurd, federal prosecutors said.
The Zourdros family owns and operates Dippin Donuts, with two locations in Rome and one in New Hartford, federal prosecutors said.
From 2013 to 2017, the owners were accused of hiding more than $4.5 million in cash sales from the IRS, and evading more than $2 million in individual and corporate taxes, federal prosecutors said.
Federal prosecutors initially said the owners concealed more than $2.8 million in cash sales. That number was increased to $4.5 million after they were convicted.
The Zourdroses deposited cash directly into their personal bank accounts instead of business bank accounts, provided incomplete information to their accountant and caused their accountant to file false individual and corporate tax returns with the IRS, federal prosecutors said.
They also used unreported cash sales to fund a lavish lifestyle, including the purchase of multiple luxury vehicles, expensive watches, investment accounts and real estate. federal prosecutors said.
They also 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, prosecutors said.
The Zourdroses were also ordered to pay over $2 million in restitution to the United States and to serve three years of supervised release after they get out of prison, according to the release.
Staff writer James McClendon covers breaking news, crime and public safety. Have a tip, a story idea, a question or a comment? Reach him at 914-204-2815 or jmcclendon@syracuse.com.