Ipswich businessman sentenced to house arrest for evading $1.8million in payroll taxes
An Ipswich businessman was sentenced to one year of house arrest and three years of probation on Wednesday after pleading guilty in US District Court in Boston to manipulating his payroll to escape more than 1 $.8 million in taxes, officials said.
George Vasiliades, 58, was also ordered to pay a $200,000 fine and more than $1.8 million in restitution, according to a statement released Thursday by the U.S. Attorney’s Office.
Vasiliades pleaded guilty in December to 17 counts of aiding and abetting the filing of false tax returns; 17 counts of failing to collect, record, and pay federal employment taxes; and one count of making a false statement to the Social Security Administration, according to the statement.
His lawyers did not immediately respond to a request for comment late Thursday afternoon.
Vasiliades operated businesses including Boston Central Management, Alpine Property Services, Delta Labor Company, Olympic Painting & Roofing and Turnpike General Contracting, prosecutors said.
To reduce company costs and increase profits, Vasiliades hid the true size of the companies’ payroll from the IRS, directing employees to set up shell companies and then pay workers as independent contractors. through the shell companies, according to the release.
It also paid some employees using bank accounts that weren’t connected to its payroll reporting software so their wages wouldn’t be reported to the IRS, and it paid workers in part through fake non-taxable expense reimbursements, prosecutors said.