Peter Thomas, the former cast member of The Real Housewives of Atlanta, has been sentenced to 18 months in federal prison for tax fraud. US District Judge Kenneth D. Bell Sr. sentenced the former reality TV star on Thursday, December 19, 2024, for failing to pay the US government over $2.5 million in employment taxes, as per The Baltimore Banner the same day.
The sentence comes months after Peter Thomas agreed to plead guilty to one count of failure to pay trust fund taxes to the District Court in Charlotte, North Carolina, where he operated his nightclub.
Back in June 2024, the Baltimore Banner reported on the reality TV star pleading guilty to his $2.5 million federal tax case. The outlet also reported on December 10 that the Feds wanted to slap the Bar One owner with a two-year sentence. The report noted a memo from the federal prosecutor, which partly reads:
"Thomas's flagrant violation of his federal payroll tax obligations over many years that served to unjustly enrich his companies and himself by more than $2.5 million and deprive the federal government funds used to provide important retirement and disability benefits to employees."
Former Real Housewives of Atlanta star attorney Melissa Owen, however, asked the judge for a one-year and one-day prison sentence for him. She argued that Thomas was "incredibly remorseful" for failing to pay trust fund taxes.
She also appeared in the sentencing memo about the reality star being a "supportive father and loyal brother and son" and using his social media platform to encourage small business owners to stay on top of their obligations to the IRS.
That said, Peter Thomas will be getting 18 months of jail time, but Judge Bell Sr. also ordered him to be on supervised release for two years and to pay the $2.5 million in restitution.
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Peter Thomas was allegedly "motivated by greed" per his tax fraud sentencing memo
Ahead of the sentencing on Thursday, Assistant US Attorney Caryn Finley argued that two years behind bars would be sufficient for Peter Thomas in the sentencing memo he filed on December 9, 2024. The memo partly reads:
"Thomas, like most tax cheats, was motivated by greed. Thomas defied the tax laws, expanding his business, hiring more employees, increasing overhead and adding more business locations at the expense of his legal obligations."
Finley further mentioned that while Americans can spend their money however they want, "they cannot steal other people's money." In Thomas's tax fraud case, the money in question was his employees' payroll taxes.
The sentencing memo further alleges that instead of paying his employment taxes, Thomas opted to spend under $375,000 on travel and ride-sharing expenses and more than $250,000 on high-end purchases at Neiman Marcus, Prada, Louis Vuitton, Givenchy, and others instead.
As for Peter Thomas, a day before the December 19 sentencing, he shared a video on Instagram, saying that he was prepared to "face the music." He also clarified in the caption for anyone confused that jail time doesn't mean that the unpaid taxes are forgiven—the taxes still need to be paid.
Peter Thomas also thanked his lawyer, the judge, and the prosecutor in the same video, adding that he was grateful for the outcome.
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