Former “The Real Housewives of Atlanta” star Peter Thomas is trading the spotlight for prison bars after being sentenced to 18 months in federal prison for failing to pay over $2.5 million in employment taxes.
On Thursday, U.S. District Judge Kenneth D. Bell Sr. handed down the sentence in Charlotte, North Carolina, also ordering two years of supervised release and restitution for the 64-year-old restaurateur.
The Case Against Peter Thomas
Peter pleaded guilty to one count of failure to pay over trust fund taxes.
Federal prosecutors revealed that between 2017 and 2023, Peter Thomas caused his businesses—including Club One CLT, Sports ONE, PT Media, and Bar One locations in Miami Beach and Baltimore—to withhold more than $1.7 million in employee payroll taxes, but failed to forward the funds to the IRS.
Assistant U.S. Attorney Caryn Finley argued that Thomas’s actions were fueled by greed, pointing to his extravagant spending on luxury items from brands like Prada, Louis Vuitton, and Givenchy, totaling more than $250,000.
“Americans can spend their money as they see fit,” Finley wrote in a sentencing memo.
“However, they cannot steal other people’s money—in this case, their employees’ payroll taxes—to prop up failing business ventures.”
A Public Apology & Lessons For Business Owners
A day before sentencing, Peter Thomas took to Instagram to reflect on his legal troubles, calling it the “50th anniversary of his arrival to the U.S.,” but noting that he never imagined marking the milestone with a prison sentence.
Thomas shared advice for small business owners: “Pay your payroll before you pay your rent, because the landlord can evict you, but you won’t go to jail. You will go to jail for not paying your payroll taxes.”
Peter Thomas’ Fall From Grace
Peter Thomas, who gained fame as the husband of Cynthia Bailey on “The Real Housewives of Atlanta,” has managed and owned restaurants and nightclubs for nearly 40 years.
His attorney, C. Melissa Owen, described him as “incredibly remorseful” and a dedicated father, brother, and son who is “loved and respected by his community.”
Owen argued for a lighter sentence, citing character letters from supporters, including Nia Banks, a fellow entrepreneur who praised Thomas’s contributions to Black-owned businesses during the pandemic.
However, Owen acknowledged that Peter’s prison sentence sends a strong message about tax compliance.
Peter Speaks Out After Sentencing
The Bigger Picture
While Peter Thomas’s sentencing marks a significant turn for the former reality TV personality, it also serves as a sobering reminder for business owners about the importance of fulfilling tax obligations.
Let this be a cautionary tale: if the IRS comes knocking, no amount of designer receipts can bail you out.
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Source: Baltimore Banner
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