CHARLOTTE, N.C. — Federal prosecutors want a two-year sentence for Peter Thomas over unpaid trust fund taxes earned from his businesses, including CLUB ONE in Charlotte, according to court documents.
A sentencing memorandum was filed detailing Thomas's systematic tax evasion across several businesses from 2017 to 2023. Thomas owned establishments in North Carolina, Florida, and Maryland, including Club One CLT, Sports ONE, and Bar One venues.
Thomas, ex-husband of Real Housewives of Atlanta star Cynthia Bailey, was charged after his Charlotte businesses failed to pay $640,000 in trust fund taxes from employee wages to the IRS, court records show. Another $1.1 million in trust fund taxes from businesses in Miami and Baltimore owned by Thomas went unpaid between 2021 and 2023.
Court records say the money was spent on numerous retail purchases, real estate and travel expenses. The government argues Thomas deliberately avoided tax obligations despite repeated warnings from the IRS, employees, and accountants. His tax non-compliance dates back to 2012 when a previous Atlanta nightclub closed due to employment tax liabilities.
In total, Thomas failed to pay more than $2.5 million in employment taxes between 2017 and 2023, according to federal court records.
On Monday, a federal attorney recommended Thomas serve a within-Guidelines sentence of 24 months in prison, a three-year term of supervised release and restitution payable to the IRS in the amount $2,526,131.99. They emphasized that Thomas's actions harm not just the government but also employees whose Social Security and disability contributions were compromised.
Back in 2019, Thomas' business, Sports ONE CLT LLC owes $236,952.51 in unpaid taxes, according to a Notice of Federal Tax Lien.
Documents showed Thomas as the owner of Sports ONE at 521 N College St. in Uptown Charlotte when the taxes were left unpaid. Sports ONE closed in Fall of 2022.
Thomas and Bailey came on WCNC Charlotte to talk about Sports ONE back in 2014 after the grand opening.
"We came up with Sports ONE, and the first market that we wanted to introduce it was here in Charlotte," Thomas said in 2014. "And we had our grand opening last night, and it was phenomenal. It was beautiful."
Thomas pleaded guilty on July 2, 2024, to one count of failure to pay over trust fund taxes. The U.S. Sentencing Guidelines recommend 24-30 months imprisonment.
A sentencing date has not yet been set.
