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3, 2016: The last remaining restaurant flunks a third inspection after an inspector observed dead roaches. At some point this month, the Cascade area location closes. 20, 2016: The AJC reports that a consultant concluded the owner should consider closing permanently because of the restaurants' "grave" financial position and "unappealing" conditions. 10, 2016: A theft of an estimated $9,000 from the safe of the Peachtree Street location is reported, but no locks are broken, a video camera at the business isn't operating and there is no burglar alarm. 6, 2016: The Peachtreet Street location fails a surprise health inspection, scoring a 44 after dead and live roaches were seen in the kitchen. She then accuses her son of trying to "extort" and "blackmail" her by threatening to falsely claim she has dementia and Alzheimer's Disease. September 2016: Hankerson responds to Knight's suit by saying her "lack of mental capacity" bars her from removing her name. 26, 2016: Gladys Knight, an Atlanta native, files suit to take her name off the restaurant, saying it's hurting her reputation. (The eateries had been operating under state receivership, and the receiver says it isn't supporting itself.)Īug. 21, 2016: The Lithonia locationis closed again, seemingly for good. July 2016: The Atlanta Journal-Constitution reports that Hankerson's employees told investigators he used the money for sex parties and marijuana.Īug. June 22, 2016: Hankerson is released on $20,000 bond from Clayton County jail. June 21, 2016: The Georgia Department of Revenue shuts down all three locations due to theft charges against Hankerson. Hankerson is accused of taking $650,000 in state sales and withholding taxes, which after penalties and interest totals more than $1 million. A lawsuit forced Hankerson to remove her name shortly before the popular Chicken and Waffles shop closed for good in 2017.Here’s an approximate timeline of the trouble:įebruary 2016: The Peachtree Street location, one of three around metro Atlanta, fails a health inspection with a score of 56 after Fulton County inspectors found 15 violations. Knight had lent her name to her son’s restaurant but was not involved with any of the daily operations. The state said at the time that Hankerson owed them over $650,000 from the three Chicken and Waffles restaurants. Gladys Knight severs ties with son’s chicken and waffles eateryĬhannel 2 Action News reported that Georgia Department of Revenue agents raided the midtown restaurant in June 2016.Gladys Knight’s Chicken and Waffles reopens after raid.Authorities raid Gladys Knight’s Chicken and Waffles restaurants.This sentencing emphasizes that all employers, big and small, have equal responsibility to collect, report, and pay over their payroll taxes.”

“Paying taxes is a way to give back to the community, but unfortunately Hankerson chose to use those funds for other means. “While ownership of a well-known restaurant in our community has its perks, it also comes with great responsibility,” said IRS Criminal Investigation Special Agent in Charge James Dorsey.