Owner of Salem Roast Beef Restaurant Pleads Guilty to Federal Tax Charges

The owner of King’s Roast Beef in Salem pleaded guilty last week in federal court in Boston to failing to pay approximately $383,000 in taxes.

John Kalantzis, 52, of Lynn, pleaded guilty to two counts of aiding and assisting in filing a false tax return. U.S. District Court Judge William G. Young scheduled sentencing for Oct. 2, 2018.

During tax years 2011 through 2015, Kalantzis underreported the gross receipts and expenses of King’s Roast Beef in order to improperly reduce the federal income taxes owed by the restaurant. Kalantzis did so by diverting some of the restaurant’s cash receipts to himself, paying for some of the restaurant supplies with cash, and paying a portion of his employee’s wages in cash. Kalantzis then failed to report this conduct to his tax preparer. As such, during each of the tax years 2011 through 2015, Kalantzis failed to report cash receipts of approximately $275,000 and cash expenses of approximately $115,000 on King’s Roast Beef’s tax returns. As a result, Kalantzis failed to report a total of $855,000 to the IRS during those years, thereby avoiding paying corporate and personal taxes of $383,000.

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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case.

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