NEWPORT NEWS, VA – Stephen G. Genakos, a 62-year-old Williamsburg resident, admitted to tax fraud in court.
Documents state that between 2016 and 2020, Genakos was the only owner and director of Sarantos, Inc., a Virginia-based corporation operating under a Subchapter S election. This corporation managed Sportsmans Grille, a restaurant in York County. Genakos has been found to have taken U.S. currency from the Sportsmans Grille since 2016.
In 2020, the Sportsmans Grille was put up for sale by Genakos for $795,000. The next year, undercover agents from the Internal Revenue Service (IRS) approached Genakos. During this covert operation, Genakos showed the IRS agents the genuine financial records of Sportsmans Grille. From 2016 to 2020, he submitted inaccurate tax returns for both himself and his company, Sarantos Inc.
Genakos confessed to helping in the creation of an incorrect tax return. His sentencing is set for March 21, 2024. The highest penalty he could receive is three years imprisonment. However, sentences for federal offenses often fall short of the maximum. A federal judge will decide the sentence after reviewing the U.S. Sentencing Guidelines and other relevant factors.
The announcement came from Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, after U.S. District Judge Arenda Wright Allen acknowledged the plea.