The owner of a Boston pizza chain accused of mistreating his employees faces additional charges for allegedly defrauding the U.S. Small Business Administration, the U.S. Attorney’s Office, District of Massachusetts said .
Stavros “Steve” Papantoniadis, owner of the “Stash’s Pizza” chain, is accused of submitting false information to the SBA in order to obtain a loan for a business he no longer owns. The prosecutor’s office claims Papantoniadis sold one of his pizzerias to Randolph and that the secretary of state later canceled the limited liability company through which Papantoniadis owned the Randolph pizzeria.
However, the DA’s office says Papantoniadis applied for an Economic Injury Disaster Loan from the SBA between November 2021 and January 2022. Papantoniadis reportedly said he still owned and operated the Boston Pizza Company in Randolph, saying he still had 18 employees.
The SBA approved the loan set aside for small businesses impacted by the COVID-19 pandemic and sent $499,900 to Papantoniadis.
Papantoniadis was arrested on March 16, 2023 and charged with four counts of forced labor and three counts of attempted forced labor. Papantoniadis was accused of targeting and employing at least seven victims without immigration status and forcing them to work while subjecting them to verbal and physical abuse, including repeated threats of deportation, the office said of the US Attorney.
Over the course of several years, Papantoniadis allegedly targeted victims without immigration status, employed them at paltry wages, and demanded that they work, in most cases, six to seven days a week, sometimes much more than eight hours a day and often without breaks or compensation for overtime, the U.S. attorney’s office said. Papantoniadis also allegedly withheld salaries.
Papantoniadis allegedly forced or attempted to force at least seven victims to work for him and comply with excessive job demands by physically abusing them; threats of violence or serious harm; and repeated threats to report the victims to immigration authorities in order to have them deported, the U.S. attorney’s office said.
‘Climate of fear’: Boston pizza chain owner physically and verbally abused employees for years, federal government says
Papantoniadis allegedly violently attacked one of the victims several times, including kicking her in the genitals, slapping and choking her, causing her to lose teeth, the US attorney’s office said. Additionally, prosecutors allege that when three other victims separately expressed their intention to quit, Papantoniadis allegedly threatened one victim by telling her he knew where he lived; he attacked another victim, forcing her to safety in the parking lot; and filed a false police report about another victim who wanted to leave Papantoniadis’ operation.
Prosecutors allege that Papantoniadis’ conduct allowed him to enjoy a substantial financial advantage over other companies in the local pizza market, by running Stash’s Pizza with fewer and cheaper workers over whom he allegedly exercised. significant control, which reduced the labor and operating costs of his business.
The new wire fraud charges provide for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000.
This is a developing story. Check back for updates as more information becomes available.
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