BOSTON (WWLP) – An Ipswich man who owned and controlled several Massachusetts businesses was sentenced Wednesday for manipulating his payroll to evade over $1.8 million in taxes.
According to the news release sent to 22News by the Department of Justice in Boston, George Vasiliades, 58, was sentenced to one year of home confinement and three years of supervised release. Vasiliades was also ordered to pay more than $1.8 million in restitution and a $200,000 fine. The government recommended a sentence of 30 months in prison.
In December 2021, Vasiliades pleaded guilty to 17 counts of failure to collect, account for, and pay over federal employment taxes; 17 counts of aiding and assisting in the filing of false tax returns; and one count of making a false statement to the Social Security Administration.
Vasiliades operated numerous businesses, including Alpine Property Services, Boston Central Management, Delta Labor Company, Olympic Painting & Roofing, and Turnpike General Contracting. Between 2008 and 2013, Vasiliades concealed the true size of his company’s payroll from the Internal Revenue Service (IRS) in order to reduce the cost of doing business and increase his profits.
Among other methods, Vasiliades directed certain employees to create shell corporations and then paid employees through these corporations as if they were independent contractors. Vasiliades also paid some employees from bank accounts that were not connected to his payroll reporting software and, as a result, would not be reported as wages to the IRS.
In addition, Vasiliades paid part of an employee’s hourly wages or salary in nontaxable, and false, expense reimbursements, such as truck or fuel reimbursements. In total, Vasiliades’ scheme resulted in more than $1.8 million in tax losses.