Baltimore entrepreneur and former Real Housewives of Atlanta personality Peter Thomas has officially begun serving his 18‑month federal prison term. He entered a federal correctional institution in Miami on August 1, 2025, following his guilty plea to one count of failing to pay employment taxes.
Thomas, 64, admitted he caused multiple businesses—including Bar One Baltimore and Bar One Miami Beach—to withhold more than $2.5 million in payroll taxes between 2017 and 2023. Approximately $1.7 million came directly from employee withholdings.
Misused Funds and Missing Taxes
Court filings show Thomas diverted withheld payroll funds into personal spending. He allegedly spent $370,000 on travel and real estate and more than $250,000 shopping at luxury retailers like Prada, Louis Vuitton, and Neiman Marcus.
Officials described this as a “flagrant violation” of federal payroll tax laws. They noted Thomas continued expanding his businesses while disregarding legal tax responsibilities.
Guilty Plea and Court Remarks
On July 2, 2024, Thomas pled guilty in federal court in Charlotte, North Carolina. At sentencing, he accepted responsibility and issued a public warning. In an Instagram post, he wrote:
“THE LAW IS THE LAW… the first thing I must say to all new business owner, please pay that withholding tax… you do not want to be in the position that I am right now.”
He also shared:
“All my people told me not to post this… just real as f**k… please pay that withholding tax.”
Thomas underscored that jail time does not erase tax obligations:
“Yes you will go to jail… jail don’t mean that the taxes is forgiven.”
Sentence Details and Restitution
The court ordered 18 months of imprisonment, followed by two years of supervised release. He must also pay $2,526,131.99 in restitution to the IRS.
While federal guidelines recommended 24 to 30 months, the judge imposed a lesser term. No official release date has been announced.