Bridgeview Diner involved in tax evasion case, owners estate to pay $1.8 Million

From brooklyneagle.com

A diner in Bay Ridge has been a shell of its former glory since the pandemic. Once a 24/7 hotspot in the Southern Brooklyn neighborhood, now it is closed each day by 10 p.m. It turns out that it may have more to do with the late owner not paying his taxes instead of COVID-19.

Attorney General Letitia James has successfully recovered over $1.8 million from the estate of the former owner of Bridgeview Diner in Brooklyn and Georgia Diner in Queens.

Dimitrios Kaloidis, the late owner, was found to have underreported more than $650,000 in cash receipts and lied on tax statements, violating the New York False Claims Act.

“When New Yorkers pay taxes, they should feel confident that those funds will help support our state’s investments in education, health care, transportation, and services all residents rely on,” said Attorney General James. “By pocketing these tax dollars, the former owner of these diners violated New Yorkers’ trust and deprived our state of essential resources.”

The investigation by the Office of the Attorney General (OAG) revealed that Kaloidis systematically underreported taxable receipts from 2015 to 2022. He maintained two sets of books at the Bridgeview Diner, reporting only a portion of the transactions to the state and pocketing taxes on the unreported cash transactions.

The Georgia Diner in Queens also failed to remit sales taxes on cash receipts. The combined tax evasion from both diners amounted to more than $650,000.

The OAG’s investigation began following a whistleblower complaint under the New York False Claims Act, which allows individuals to file civil actions on behalf of the government and share in any recovery. The whistleblower in this case is set to receive $356,913 as part of the settlement.

The estate of Dimitrios Kaloidis has agreed to pay $1,187,272 in owed taxes and interest, along with $334,307 in penalties. This settlement highlights the attorney general’s commitment to holding tax cheats accountable and safeguarding public funds.