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Press Release

Owners of Peabody Pizza Shop Plead Guilty to Federal Tax Charges

For Immediate Release
U.S. Attorney's Office, District of Massachusetts

BOSTON – The owners of Giovanni’s Roast Beef & Pizza in Peabody pleaded guilty yesterday to skimming cash receipts from Giovanni’s and failing to report the cash on their tax returns, thereby avoiding the payment of more than $550,000 in taxes. 


William Panousos, 66, Theodora Panousos, 64, and Konstantinos Panousos, 38, each pleaded guilty to one count of conspiracy to defraud the United States. William Panousos also pleaded guilty to three counts of aiding and assisting in filing false corporate and individual tax returns; Theodora pleaded guilty to four counts; and Konstantinos pleaded guilty to two counts. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for March 8, 2018.


During tax years 2013 through 2015, the defendants skimmed approximately $1.5 million in cash receipts from Giovanni’s and did not deposit them into the business’ bank account or report them to their tax preparer. In addition, the defendants paid some of the business’ expenses in cash, including a portion of payments to suppliers and a portion of employees’ salaries. They also failed to report about $550,000 of those cash expenses on their tax returns.  


The charge of conspiracy to defraud the United States provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000.  Each charge of aiding and assisting the filing of false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.  


Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement.  Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit is prosecuting the case. 

Updated November 30, 2017