CHANDLER, Ariz. — The former owners of two East Valley restaurants have been convicted of tax evasion and ordered to pay millions to the Arizona Department of Revenue.
George Krotonsky, the former owner of the Teakwoods locations in Chandler and Gilbert, was sentenced Monday to spend 1.5 years in the Arizona Department of Corrections, followed by seven years of supervised probation.
Krotonsky was additionally ordered to pay nearly $2 million in restitution to the state and a fine of $100,000.
Aubrey Sturdivant, another owner of the restaurants, was ordered to spend nine months in the county jail, followed by seven years of probation, and pay over $1 million in restitution.
The defendants withheld sales tax revenue generated at their restaurants from the state, according to the Department of Revenue. They additionally withheld the income tax from their employees' paychecks.
Krotonsky and Sturdivant both pled guilty to fraud and filing a false tax return.
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