Greek Shipping Magnate Arrested for Fraudulent Tax Return

ktistakisLast October, a shipping magnate Lucas Ktistakis, originally from Greece, was charged for filing a fake tax return. Ktistakis pleaded guilty of charge. On Wednesday the 15th, the federal courted ordered him to pay $1.5 million dollars in restitution to the Internal Revenue Service.

Being a fugitive for ten years, the 78 year-old man was extradited to New Orleans in September 2013. Ktistakis was then given a $10,000 fine to pay, along with a sentence of a three-year supervised release.

Ktistakis is accused of concealing his ownership stake in several foreign corporations, even from his accountant. In addition, he was transferring money into secret foreign bank accounts.

In 2003, Ktistakis along with his wife Kathryn, were again accused of buying cars worth more than 500,000 dollars and property in Greece. The money for these purchases came from their companies, one of which was the Sunrise Shipping Agency Inc. based in New Orleans. As authorities alleged, the money was diverted from the company and it wasn’t reported as income to the International Revenue Service.

The couple were residents of Chagrin Falls, Ohio. Before he was sent to the USA, Ktistakis spent six months in Germany, where he was arrested.