BOSTON — Nicholas Koudanis, the co-owner of Nick’s Famous Roast Beef, his wife and son were sentenced in federal court for skimming nearly $6 million in cash from the Beverly eatery and failing to report the income on tax returns, according to the U.S. Attorney’s Office.
Koudanis, 67, of Topsfield, was sentenced by U.S. District Court Chief Judge Patti Saris to two years in prison, two years of probation and ordered to pay $2 million to the Internal Revenue Service (IRS).
In January, Koudanis pleaded guilty to one count of conspiracy to defraud the U.S. by obstructing the IRS and 10 counts of filing of false tax returns.
His wife, Eleni Koudanis, 61, was sentenced to one year of probation and ordered to pay the same amount of restitution. She previously pleaded guilty to five counts of aiding and assisting in the filing of false tax returns. The restitution amount consists of the approximately $992,821 in taxes the Koudanises avoided paying, plus interest and penalties.
Steven Koudanis, their 40-year-old son, was sentenced to one year of probation to be served in home confinement and ordered to pay $151,240 to the IRS. He pleaded guilty to one count of obstructing and impeding the administration of the IRS laws.
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From 2008 to 2013, prosecutors alleged the co-owners of Nick’s failed to report more than $1 million in cash receipts annually. Each week, Koudanis and Nicholas Markos divided the cash receipts, determining how much to deposit to the business’s bank account and report on their tax returns, how much to use to pay suppliers and employees, and how much to keep for themselves.
Eleni Koudanis was responsible for the bookkeeping functions of the restaurant and provided some of the false income information to the tax preparer.
Their son, Steven, created false cash register receipts that were used in connection with an IRS tax audit of the business. The actual cash register receipts were not provided to the tax preparer who prepared the business and personal tax returns.
By the close of 2014, Nicholas and Eleni Koudanis amassed more than $1.6 million in cash, which they kept in a safe in their home.
In January, Markos pleaded guilty to the same charges as Nicholas Koudanis and is scheduled to be sentenced May 9.