Ipswich Contractor sentenced for $1.8 million payroll tax scheme

Wednesday June 15, 2022

BOSTON – An Ipswich man who owned and operated numerous businesses in the state was sentenced to a year of home confinement and three years of supervised release for manipulating his payroll to evade over $1.8 million in taxes.

George Vasiliades, 58, was also ordered to pay more than $1.8 million in restitution and a $200,000 fine by U.S. District Court Judge Allison D. Burroughs on Thursday, June 9. The government recommended a sentence of 30 months in prison, according to a release from the U.S. Attorney’s office.

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 the filing of false tax returns; and one count of making a false statement to the Social Security Administration.

Vasiliades operated several 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 companies’ payroll from the Internal Revenue Service (IRS) in order to reduce the cost of doing business and thereby increase his profits, according to the U.S. Attorney’s office.

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 corporate 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, the U.S. Attorney’s office stated that the scheme resulted in more than $1.8 million in tax losses.

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