'RHOA' Alum Peter Thomas Begins Serving 18-Month Federal Prison Sentence for Tax Evasion

Former RHOA personality Peter Thomas has reported to federal prison to begin serving an 18-month sentence after pleading guilty to failing to pay employment taxes.

Thomas, 64, entered his plea in U.S. District Court in Charlotte, North Carolina, on July 2, 2024, to one count under 26 U.S.C. § 7202.

According to the Baltimore Banner, he turned himself in on Friday, August 1. Thomas is currently in custody at the Federal Correctional Institution in Miami and will be on supervised release for two years after his sentence. His release date has not been listed.

Prosecutors said that between 2017 and 2023, Thomas owned and operated several hospitality and media businesses—including Club One CLT, Sports ONE, Sports ONE CLT, and PT Media in Charlotte; Bar One Miami Beach in Florida; and Bar One Baltimore in Maryland—and was the responsible person for collecting and remitting payroll taxes.

According to the sentencing memorandum and presentence report, those entities failed to pay more than $2.5 million in employment taxes, including over $1.7 million in employee withholding (trust fund) taxes.

The filings state that instead of paying the IRS, funds were transferred between company accounts and used for other expenditures. Prosecutors cited multi-million-dollar inter-account transfers and cash withdrawals, as well as spending on travel and retail purchases at luxury brands.

The government also argued that Thomas had been repeatedly warned about his obligations, signed multiple Forms 941 reflecting the amounts withheld, and, in at least one instance, directed an employee not to remit the taxes.

Federal guidelines in this case calculated an advisory range of 24 to 30 months, based on a total offense level of 17 and a Criminal History Category of I. While the government recommended a 24-month term, the court imposed an 18-month term. Thomas also agreed to pay restitution to the IRS in the amount of $2,526,131.99.

Bar One Baltimore closed in 2023. Ahead of reporting to prison, Thomas posted on Instagram in May, referencing the Miami facility and advising business owners to pay withholding taxes.