Dippin Donuts owners found guilty of chiseling taxpayers out of $650,000

H. Rose Schneider, Observer-Dispatch
·1 min read

The Rome family who operated Dippin Donuts stores in Oneida County were convicted Wednesday in federal court in Utica for tax evasion, filing fraudulent returns and conspiring to defraud the United States, according to court records.

John and Helen Zourdos owned and operated Dippin Donuts on Erie Boulevard and Black River Boulevard in Rome and on Seneca Turnpike in New Hartford. Their son Dimitrios Zourdos actively participated in operations, court documents stated. All three were indicted in October 2020 on charges they hid cash sales from the IRS and paid some employees "off the books."

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A state police vehicle at the Dippin Donuts store in New Hartford in June 2018. Officials at the time said their presence was IRS-related.
A state police vehicle at the Dippin Donuts store in New Hartford in June 2018. Officials at the time said their presence was IRS-related.

Prosecutors with the United States Attorney's Office said between 2013 and 2017 the family hid more than $2.8 million in cash sales and evaded more than $650,000 in individual taxes by depositing funds directly to their personal bank accounts rather their business accounts. Excess funds were used to purchase items like luxury vehicles, prosecutors said.

Following a 10-day trial before federal Judge David Hurd in Utica, a jury found all three family members guilty on all charges Wednesday afternoon, according to court records. Sentencing hearings will be scheduled at a later date.

All three face up to five years in prison on each count of conspiracy and tax evasion and three years on each count of filing false returns, as well as fines of up to $250,000 or twice their profits, and a three-year term of supervised release, prosecutors said.

All three shops currently remain open, with the business still listed under John Zourdos' name.

Attorneys representing the defendants have not yet returned calls for comment.

H. Rose Schneider is the public safety reporter for the Observer-Dispatch. Email Rose at hschneider@gannett.com.

This article originally appeared on Observer-Dispatch: Dippin Donuts owners convicted in $650K tax fraud case