Shanga Hankerson, 45, has been sentenced to two years in prison for unpaid taxes. Hankerson son of legendary soul singer Gladys Knight, allegedly used the owed tax money on sex parties and marijuana.
Hankerson, is the former owner of Atlanta-based Gladys Knight’s Chicken and Waffles restaurant, reportedly failed to fully remit more than $650,000 state sales and withholding taxes, which after penalties and interest totals more than $1 million, between from at least 2012 to 2016 acting U.S. Attorney Kurt Erskine said.
“Hankerson willfully disregarded his tax obligations for many years,” Erskine said in an emailed statement, according told AJC. “Payroll taxes fund social insurance programs, including Social Security and Medicare, and are a large source of revenue for the federal government. Employers who fail to comply with their legal obligations will be held accountable.”
Hankerson was sentenced to serve two years in prison, one year of supervised release, and ordered to pay restitution of $1,039,310.65 after pleading guilty eariler this year.
“While ownership of a well-known restaurant in our community has its perks, it also comes with great responsibility,” IRS Criminal Investigation Special Agent James E. Dorsey said. “Paying taxes is a way to give back to the community, but unfortunately Hankerson chose to use those funds for other means. This sentencing emphasizes that all employers, big and small, have equal responsibility to collect, report and pay their payroll taxes.”
The three restaurants, Hankerson solely owned and founded in 1997, were shut down by the Georgia Department of Revenue in 2016 when he was also first arrested. His mother Gladys Knight also sued him to remove her name and likeness from his businesses. The restaurants are now called World Famous Chicken and Waffles.
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