‘RHOA’ Alum Peter Thomas Sentenced To 18 Months In Jail For Tax Evasion!

‘RHOA’ Alum Peter Thomas Sentenced To 18 Months In Jail For Tax Evasion!

The Real Housewives of Atlanta alum Peter Thomas was sentenced to 18 months in federal prison for failing to pay more than $2.5 million in employment taxes.

The sentence was handed down Thursday in U.S. District Court in Charlotte, North Carolina, presided over by Judge Kenneth D. Bell Sr.

Details of the verdict

In addition to the prison sentence, Judge Bell ordered Peter Thomas64, to serve two years of supervised release and to pay restitution for unpaid taxes. Peter pleaded guilty in June to one count of failure to pay taxes on trust funds.

Tax evasion scheme

In the period from 2017 to 2023. Peter owned and operated several businesses including Club One CLT, Sports ONE, Sports ONE CLT, PT Media, Bar One Miami Beach and Bar One Baltimore. During that period, those institutions failed to pay employment taxes, including more than $1.7 million withheld from employee paychecks. Instead of remitting these funds to the Internal Revenue Service (IRS), Peter he used the money for personal expenses.

Arguments of the prosecutor’s office

Assistant U.S. Attorney Caryn Finley argued for at least two years in prison, stressing that Peter the actions were driven by greed and flagrant disregard for tax laws. Finley stated this Peter used the misappropriated funds to “personally enrich and expand and support his other ventures,” including spending more than $250,000 on luxury items from brands such as Prada, Louis Vuitton and Givenchy.

She went on to point out that while people are free to spend their money as they wish, they “cannot steal other people’s money—in this case, the payroll taxes of their employees—to prop up their otherwise failing business enterprises.” .

Defense motion

Peter lawyer, K. Melissa Owen, asked for a more lenient sentence of one year and one day, emphasizing Peter remorse and its positive position in society. Owen described her client as “incredibly remorseful for failing to pay taxes on the trust fund” and noted his reputation as a father, loyal brother and supportive son. She also mentioned that Thomas has used his social media platform to advise small business owners on the importance of IRS compliance.

Statement by Thomas

Before sentencing, Peter addressed his situation on Instagram, pleading guilty and saying he was ready to “face the music” after pleading guilty to tax charges. He reflected on his 50th anniversary of coming to the United States, noting, “I didn’t think I’d be celebrating it like this.” Peter also offered advice to other business owners, stressing the importance of prioritizing payroll taxes over other expenses to avoid legal ramifications.

Background

Originally from Kingston, Jamaica, Peter moved to the United States as a child and grew up in Brooklyn, New York. He managed and owned restaurants and nightclubs for nearly four decades, gaining national recognition for his appearances on The Real Housewives of Atlanta with his then-wife, Cynthia Bailey.

Legal consequences

Failure to pay employment taxes is a serious federal offense because employers are required to withhold taxes from employees’ wages and remit them to the IRS. Misusing these funds not only violates tax laws, but also jeopardizes future Social Security and employee health benefits. Peter the penalty serves as a warning to business owners about the severe consequences of not fulfilling their tax obligations.

For more details, please refer to the official press release from the US Attorney’s Office for the Western District of North Carolina.

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Avigail is an entertainment blogger at All About The Tea, specializing in The Real Housewives of Atlanta and The Real Housewives of Potomac. Abigail has a background in marketing. She is a Brooklyn native living in the Bahamas who enjoys traveling, writing, watching reality shows, pop culture, and spoken word.