Peter Thomas Sentenced to 18 Months in Federal Prison in Tax Case

Peter Thomas was facing a few years in prison.

Thomas, a restaurateur and former reality TV star who appeared on “The Real Housewives of Atlanta,” was sentenced Thursday to serve 18 months in federal prison for failing to pay the government more than $2.5 million in employment taxes.

U.S. District Judge Kenneth D. Bell Sr. also ordered Thomas to spend two years on supervised release and pay restitution.

Thomas, 64, now of Miami, pleaded guilty in U.S. District Court in Charlotte, North Carolina, to one count of failure to pay over trust fund taxes.

Between 2017 and 2023, Thomas caused Club One CLT, Sports ONE, Sports ONE CLT, PT Media, Bar One Miami Beach and Bar One Baltimore to fail to pay employment taxes — including more than $1.7 million that was taken from the paychecks of his workers, federal prosecutors reported.

Assistant U.S. Attorney Caryn Finley pushed for a sentence of at least two years in prison, arguing that Thomas was motivated by greed and continued to flaunt the law.

Thomas, she said, used the money to “personally enrich himself and to expand and support his other business ventures.”

That’s including spending more than $250,000 on “high-end purchases” at businesses including Prada, Louis Vuitton and Givenchy.

“Americans can spend their money as they see fit, including on business ventures,” Finley wrote in a sentencing memo. “However, they cannot steal other people’s money—in this case their employees’ payroll taxes—to prop up their otherwise failing business ventures.”

But C. Melissa Owen, Thomas’ attorney, requested a sentence of one year and one day in prison.

She said her client is “incredibly remorseful for his failure to pay trust fund taxes.”

“He is loved and respected by his community. He is a supportive father and loyal brother and son,” Owen wrote in a sentencing memo. “He has used his social media platform to encourage others, in particular, small business owners, to prioritize their obligations to the IRS.”

A day ahead of sentencing, Thomas shared on Instagram that he was prepared to “face the music” after pleading guilty to the tax charges. He reflected that it was the 50th anniversary of his arrival to the U.S., remarking, “I didn’t think I would be celebrating it quite like this.” While he’d hoped to settle the matter through a payment plan, he learned “it doesn’t work like that.”

Thomas offered a warning to business owners. “Pay your payroll before you pay your rent, because the landlord can evict you, you ain’t gonna go to jail though. But you will go to jail for not paying your payroll taxes with the United States government.”

Owen said her client will feel the weight of any jail or prison sentence.

“Mr. Thomas is known to much of America as a partner to a ‘Real Housewife’, a reality television character known for a high end lifestyle,” Owen said. “Watching Mr. Thomas go to federal prison is a stark contrast from that world and a stern message for the public to pay your tax obligations.”

At least seven people submitted character letters on Thomas’ behalf, including Nia Banks, owner and CEO of Art of Balance Wellness Spa in Federal Hill.

Banks wrote that she met Thomas in Baltimore and connected over their efforts to build Black-owned businesses during the COVID-19 pandemic.

“Peter is important to many people, chief among them his family and children,” Banks said. “He is a source of inspiration for many in his community who dare to achieve more than what was designed for them. He is a friend and confidant to me.”

“I know that Peter takes repaying his debts seriously,” she added. “If he must stop and address the consequences of falling behind, let it be brief. He has much work yet to do.”

Before Bar One Baltimore in Harbor East closed in 2023, Thomas, without offering evidence, accused his employees of stealing from the business.

Thomas scornfully spoke about the city and extended his disdain toward its Black residents.

“There’s a big difference between African Americans in Baltimore City and African Americans in Washington, D.C.,” said Thomas, commenting that people from the nation’s capital are “much more cosmopolitan.”

via: Baltimore Banner

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