Pizza Restaurant Owner Sentenced For Filing False Tax Returns

OLD SAYBROOK, CT — The owner of a pizza restaurant in Old Saybrook has been sentenced to three months in prison for failing to pay more than $340,000 in taxes, according to authorities. Robert Kehayias, 58, of Old Saybrook, was also sentenced to one year of supervised release for filing false tax returns, U.S. States Attorney for Connecticut John H. Durham announced in a press release.

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 though 2014 tax years, authorities say 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,” the U.S. States Attorney’s Office wrote in a press release. “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 $343,000 in taxes.”

Kehayias pleaded guilty last September to one count of filing a false tax return. He has paid all of his back taxes and still owes about $361,000 interest and penalties, authorities said. The judge also ordered Kehayias to make a $200,000 payment to the IRS within two weeks.

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