All three Zourdos family members convicted in the multi-million dollar tax evasion scheme at their Dippin Donuts locations in Rome and New Hartford have been sentenced to federal prison time.
The judge chose to stagger the sentences for John, Helen, and Dimitrios to allow at least one family member to run the family business. The judge was asked to consider the livelihoods of at least 25 Dippin Donuts employees.
The family has also been ordered to pay $2 million in restitution to the US government, with all additional fines waived.
“Greed and wealth appear to be the two key mediating factors in this case,” said U.S. District Court Judge David N. Hurd on Wednesday.
In passing sentence, the judge noted the family’s apparent lack of remorse and “almost a sense of entitlement to the money,” while also noting that the Zourdos family members “have been good citizens in many, many respects.”
Judge Hurd sentenced John Zourdos, 69, to two and a half years in federal prison. Helen Zourdos, 65, was sentenced to one year and eight months in prison.
Dimitrios Zourdos, 39, was sentenced to ten months in federal prison. Each sentence will include three years of post-release supervision, and all three sentences were less than the maximum possible sentence for each defendant.
On Nov. 10, a jury found John, Helen, and Dimitrios guilty of all charges brought against them: one count of conspiracy to defraud the United States, seven counts of tax evasion, and seven counts of aiding and assisting in the filing of false corporate income tax returns.
Prosecutors claimed that the family members pocketed a portion of daily cash sales from their three Dippin Donuts locations — two in Rome and one in New Hartford — and failed to report this money to the IRS between 2012 and 2017.
Prosecutors claimed that all three received at least $2 million in federal taxes than they should have paid.
Prosecutors said the family also avoided paying additional taxes by paying some of their employees under the table when they worked overtime.
John Zourdos
“I’m very sorry for this situation,” John Zourdos said briefly.
Judge Hurd gave John Zourdos one month to get his affairs in order. On August 16, he must report to prison.
One factor that contributed to John receiving the highest sentence in his family was that he was the only one to take the stand in his own defence at trial, and the court determined that John likely lied on the stand about the crime based on the evidence and verdict.
Defence attorney David Garvin praised Zourdos in court, pleading for a light sentence.
“John, along with his wife, Helen, have been charitable to all those who approached them in need,” Garvin told the judge.
“His generosity, lifetime of hard work, law-abidingness, and charity are exemplary and far beyond what is normally expected.” Garvin stated that John Zourdos is “humiliated, humbled, disappointed, and, most importantly, sorry.”
Helen Zourdos
“I can’t find the words to express how humiliating this is and how sorry I am,” Helen Zourdos said in court as part of a prepared statement.
“I’m exhausted, battered, and broken,” Helen said, adding that she couldn’t stand hearing the government call her a criminal. “I’m deeply sorry.”
According to Judge Hurd, Helen Zourdos will not have to begin her sentence until June 15, 2023. She was given the delay to continue caring for her 93-year-old mother, who suffers from dementia.
At the sentencing, two family members, including a Dippin Donuts store manager, spoke on behalf of the Zourdos family.
“They’re kind, generous, respected, and well-loved,” said family friend Jeannine Early. She gave Judge Hurd numerous examples of how charitable the Zourdos family has been over the years, to both individuals and organizations.
“They’re the most selfless, hardworking, and inspiring individuals I’ve ever had the pleasure of meeting,” said Shelbey Wheadon, manager of all three Dippin Donuts locations.
She stated that the “thousands” of acts of kindness she has witnessed or heard about “come naturally simply because of the kinds of people they are…I know they have a lot more good to do in this cruel world.”
Dimitrios Zourdos
“I’m deeply sorry for everything that has occurred. “All I ever wanted to do was help my parents,” Dimitrios told Judge Hurd before his sentencing.
He stated that he wanted to help his parents because of all the “sacrifices” he had witnessed them make over the years.
“All I’ve done is work hard and assist my family with their businesses.”
Dimitrios Zourdos was given one month to get his affairs in order by Judge Hurd, and he was also ordered to report to prison on August 16.
Dimitrios’ sentence was reduced because Judge Hurd agreed with the defence that he played a lesser role in the crime than his parents.
Defence attorney Gabriel Nugent told Judge Hurd that the “nuance is extremely important” in determining Dimitrios’ role in the crime.
“He’s loyal…always he’s been there and very reliable,” Nugent said of Dimitrios. “He’s a truly humble individual.” He does what he is told.”
Judge Hurd
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The prosecution, represented by Assistant U.S. Attorney Michael F. Perry and Assistant Chief John N. Kane of the United States Department of Justice, repeatedly stated on Wednesday that the crime had been ongoing for many years and that the family showed an “utter lack of remorse” for their actions.
Kane said of John Zourdos, “He continues to put forward false narratives and false defences that it was the accountants’ fault.”
Judge Hurd agreed with many of the prosecution’s points. He mentioned that John and Helen Zourdos have a net worth of more than $3.4 million, and Dimitrios has a net worth of more than $1 million.
Hurd stated that if they had not engaged in tax evasion, “their business would still have been very profitable,” and they would still have high net worths.
“When you steal $2 million, you can make a lot of charitable donations,” Judge Hurd noted ahead of sentencing.
