Medford Pizza Shop Owner Pleads Guilty To Tax Violations

MEDFORD, MA – The owner of a Medford pizza shop on Tuesday admitted to filing tax returns that failed to include the cash payments he made to employees, the U.S. Attorney's office said. Nikita Yanakopulos, 40, who owned and operated Pinky's Famous Pizza from 2000-2016, pleaded guilty in federal court to two counts of aiding and assisting in filing false Forms 941, Employer's Quarterly Federal Tax Return, which is used to report income taxes, Social Security taxes and Medicare taxes withheld from employees’ paychecks.

During that 16-year period, Yanakopulos paid several employees by check and cash and other employees entirely in cash. Authorities said he filed Forms 941 that only included check payments, while paying a total of about $675,000 in cash to employees, which he failed to report to his payroll service or pay the required withholding amounts to the IRS.

This allowed him to avoid paying FICA, Medicare and withholding taxes totaling about $172,000, according to the USAO.

The 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, or twice the gross gain or loss, whichever is greater. Yanakopulos is scheduled to be sentenced May 22.

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