WILLIAMSBURG, Va. (WAVY) – The owner of the Sportsmans Grille in Williamsburg skimmed hundreds of thousands of dollars off the restaurant’s books over several years, prosecutors say, using most of it as gambling money.
Stephen G. Genakos, 62, was officially indicted by a federal grand jury with nine counts of aiding and assisting in the preparation of materially false tax returns, the Department of Justice announced Friday.
The indictment says Genakos filed false returns from 2016 through 2020, and skimmed a total of more than $670,000 during that period. More than $112,000 went to his personal bank account, and more than $502,000 went to gambling with the Virginia Lottery. The total tax loss to the U.S was about $113,163, the DOJ says.
Genakos scheme was ultimately exposed in 2021 by undercover IRS agents, prosecutors say, after Genakos put the Sportsmans Grille up for sale the year before. He allegedly joked about his “magic book” before eventually providing the agents with the true books.
Genakos faces a maximum of 3 years in prison on each of the nine counts if convicted.
He waived a formal arraignment and entered a not guilty plea. Genakos was granted bond on April 14.
A jury trial has been set for September 12.
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