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Press Release

Owners of Peabody Pizza Shop Sentenced for Federal Tax Charges

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

BOSTON – The current and former owners of Giovanni’s Roast Beef & Pizza in Peabody were sentenced today in federal court in Boston in connection with skimming cash receipts from Giovanni’s and failing to report the cash on their tax returns, thereby avoiding the payment of about $550,000 in taxes. 

William Panousos, 67; his wife, Theodora Panousos, 65; and their son, Konstantinos Panousos, 39, were each sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to three years of probation, with the first 18 months confined to the City of Peabody, and ordered to pay a fine of $150,000. The Judge also ordered join and several restitution of $549,883 to the IRS. In November 2017, the all three defendants 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.

During tax years 2013 through 2015, the Panousos’ skimmed approximately $2.8 million in cash receipts from Giovanni’s and did not deposit them into the business’ bank account or report them to their tax preparer. They diverted about $1.5 million of those cash receipts to their own personal use. They used the rest of the skimmed cash to pay some of the business’ expenses, including a portion of payments to suppliers and a portion of employees’ salaries. In addition, the defendants failed to report those cash expenses on their tax returns. 

United States Attorney Andrew E. Lelling and Kristina O’Connell, 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 Lelling’s Economic Crimes Unit prosecuted the case. 

Updated August 16, 2018