Peter Thomas Faces Two-Year Prison Sentence Over $640,000 in Unpaid Trust Fund Taxes

Peter Thomas Faces Two-Year Sentence for Unpaid Trust Fund Taxes

CHARLOTTE, N.C. — Looks like the spotlight is shining bright on Peter Thomas, and not for the reasons he might hope. The former reality TV star is in hot water with federal prosecutors who are pushing for a hefty two-year prison sentence. Why, you ask? Well, it all stems from his failure to pay over a whopping $640,000 in trust fund taxes connected to his businesses, including the popular CLUB ONE in Charlotte. Yikes!

The Background Story

According to court documents, Thomas has been on a tax evasion spree that spans several businesses all the way from 2017 to 2023. He’s had his hands in various establishments not just in Charlotte but also in sunny Florida and Maryland. We’re talking about places like Club One CLT, Sports ONE, and Bar One. But, it seems like all was not glitter and glamour behind the scenes.

Thomas, who is also known as the ex-husband of Cynthia Bailey from the Real Housewives of Atlanta, found himself entangled in a mess after his businesses decided to skip out on their tax duties. Specifically, he failed to pay those critical trust fund taxes that are supposed to be taken from employee wages and sent straight to the IRS. Adding to the drama, it looks like another $1.1 million in trust fund taxes from his Miami and Baltimore businesses was also left unpaid between 2021 and 2023. Ouch!

Where Did the Money Go?

So, what did Thomas do with all that cash that should have gone to the IRS? Allegations claim he was busy spending it on lavish retail shopping sprees, real estate, and even travel expenses. According to government prosecutors, this appeared to be a deliberate attempt to avoid tax obligations, even after receiving numerous warnings from the IRS. Can you believe that?

A History of Tax Troubles

Interestingly enough, Thomas’s issues with taxes aren’t new. Federal court records reveal that his tax problems date back to 2012 when one of his Atlanta nightclubs found itself in hot water and closed down due to employment tax liabilities. Fast forward to now, and Thomas has racked up an astounding total of over $2.5 million in unpaid employment taxes from 2017 to 2023. Talk about a troubling trend!

A Tough Recommendation from Federal Prosecutors

On Monday, federal attorneys filed a recommendation for Thomas to face a 24-month prison sentence and three years of supervised release, along with a hefty restitution of $2,526,131.99 payable to the IRS. The prosecutors argued that Thomas’ actions didn’t just harm the government; they also put at risk the well-being of employees whose Social Security and disability contributions were compromised. It’s hard-hitting to think about the ripple effects of such actions.

The Downfall of Sports ONE

Let’s take a moment to highlight one of Thomas’s ventures, Sports ONE. Back in 2019, the business was reported to owe $236,952.51 in unpaid taxes, according to a Notice of Federal Tax Lien. Thomas was the owner of the Charlotte hotspot located at 521 N College St. Unfortunately, Sports ONE shut its doors for good in the fall of 2022, marking the end of an era.

Final Thoughts

Peter Thomas didn’t just put his own business at risk; he jeopardized the future of his employees. It’s a complicated situation filled with high stakes and significant consequences. Thomas did plead guilty to one count of failure to pay over trust fund taxes back in July, and while the U.S. Sentencing Guidelines suggest a prison term between 24 to 30 months, a firm sentencing date is still yet to be set. The drama continues, and we’ll be keeping an eye on how this all unfolds!