BOSTON — The former owner of Giovanni’s Roast Beef & Pizza in Saugus was sentenced Thursday in federal court for tax fraud, according to the U.S. Attorney’s Office.
Steve Konis, 70, was sentenced to three months in prison, two years of supervised release, and ordered to pay a fine of $100,000 and restitution of $178,196 by U.S. District Court Judge Douglas P. Woodlock.
Konis, the shop’s owner, pleaded guilty in July to two counts of aiding and assisting in filing false corporate tax returns.
Prosecutors alleged from 2012 through 2016, Konis underreported the gross receipts of the restaurant to reduce federal income taxes owed. He did this by diverting some of the restaurant’s cash receipts for his own benefit, paying for some supplies with cash, and paying a portion of his employees’ wages in cash.
In addition, Konis failed to report all of Giovanni’s business expenses in order to make the false gross receipts he reported appear more realistic. As a result, Konis failed to report on cash receipts totaling approximately $800,000 and cash expenses of $312,000 on Giovanni’s tax returns. As a result, for tax years 2012 through 2015, Konis avoided paying corporate and personal taxes totaling $178,169.
Thomas Grillo can be reached at [email protected].
