BOSTON — The former owner of Pinky's Famous Pizza in Medford was sentenced on Wednesday in federal court on in connection with filing tax returns which failed to disclose the cash payroll payments he made to employees.
Nikita Yanakopulos, 40, of Medford, was sentenced to one year and one day in prison, one year of supervised release and a fine of $5,500.
Yanakopulos pleaded guilty in February to two counts of aiding and assisting in filing false federal tax forms used to report income taxes. Social Security taxes and Medicare taxes withheld from employee's paychecks.
Yanakopulos caused his payroll service to file Forms 941 that only included payroll paid by check. During that time. Yanakopulos made cash payments totaling $675,000 but never reported those payments to his payroll service nor did he pay the required withholding amounts to the IRS.
From 2000 to 2017, the period of time where Yanakopulos owned and operated Pinky's, he paid several employees by check and cash and other employees entirely in cash.
Yanakopulos avoided paying nearly $172,000 in FICA, Medicare and withholding taxes.