Owner of Old Saybrook Pizza Restaurant Admits Filing False Tax Returns

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that ROBERT KEHAYIAS, 58, of Old Saybrook, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of filing a false tax return.

According to court documents and statements made in court, KEHAYIAS owns and operates Pizza Works (also known as Pizza Junction, LLC), a restaurant located in Old Saybrook.  For the 2010 through 2014 tax years, KEHAYIAS deposited most of the cash receipts generated by the restaurant into his personal money market account, a portion of the cash receipts into other personal bank accounts, and only a minimal amount of cash into the business bank account.  During this time, KEHAYIAS provided his tax return preparer with Quickbooks reports that significantly understated the gross receipts of the business each year.  As a result, KEHAYIAS failed to report more $765,733 in taxable income on his federal income tax returns for the 2010 through 2014 tax years, and failed to pay approximately $340,000 in taxes.

Judge Meyer scheduled sentencing for January 16, 2018, at which time KEHAYIAS faces a maximum term of imprisonment of three years, a fine of up to approximately $680,000 and back taxes, interest and penalties.

This case has been investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.