April 10, 2008

            LANSING − Attorney General Mike Cox announced today the convictions of Thomas Karadimas and his son Constantinos Karadimas of tax evasion, a 5-year felony.

            "At a time when the state treasury can least afford to have persons shirk their obligations to pay taxes, we are hoping that this case sends a strong message − that my office is watching carefully and will not only pursue recovery of back taxes but will bring criminal charges when appropriate," said Cox.

            Thomas Karadimas of Rochester Hills was convicted of two counts of Failure to File a Sales Tax Return and Constantinos Karadimas of Livonia was convicted of one count of Failure to File a Sales Tax Return.

            The Michigan Gaming Control Board observed suspicious activity and reported it to Michigan State Police. From there the Attorney General, State Police and Michigan Department of Treasury combined efforts to resolve this case.

            The Attorney General issued felony criminal charges following the execution of search warrants that uncovered $700,000 in cash at the Plaka Cafe. The business failed to pay sales tax owed to the State of Michigan for a period of more than five years.

            Terms of the pleas will result in the repayment to the State of Michigan of $1.5 million in back taxes and penalties.

            Sentencing for both is scheduled for May 28, 2008, before the Hon. Margie Braxton of the Wayne County Circuit Court. 

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