Ipswich Contractor Faces $1.8M Tax Fraud Sentence

BOSTON – In a stunning turn of events, George Vasiliades, 58, of Ipswich, MA, the owner and operator of numerous Massachusetts-based businesses, has pleaded guilty to orchestrating a $1.8 million payroll tax scheme that spanned over five years. The defendant faces up to nine years in prison and millions in fines for his fraudulent activities.

Vasiliades, who operated companies such as Alpine Property Services, Boston Central Management, Delta Labor Company, Olympic Painting & Roofing, and Turnpike General Contracting, was charged with 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. His sentencing is set for March 24, 2022.

The IRS uncovered that Vasiliades concealed payroll figures from the government by employing various deceptive methods. He had employees establish shell corporations and paid them as independent contractors. Additionally, some workers were paid through non-reportable bank accounts, effectively bypassing his corporate payroll reporting software. One particular case involved using a U.S. citizen’s name and Social Security number to pay a non-citizen employee.

Each count of failure to collect and pay over federal employment taxes, as well as making a false statement to the Social Security Administration, carries a potential sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. The aiding and assisting in filing false tax returns charges carry a maximum penalty of three years in prison, one year of supervised release, and the same monetary fines.

United States Attorney Nathaniel R. Mendell; Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigations in Boston; Anthony DiPaolo, Chief of Investigations for the Insurance Fraud Bureau of Massachusetts; and Jonathan Mellone, Special Agent in Charge of the New York Region of the U.S. Department of Labor’s Office of Inspector General – all announced the charges against Vasiliades today. Assistant U.S. Attorney Christopher J. Markham is leading the prosecution.

This case serves as a stark reminder of the lengths some will go to evade taxes, and it underscores the commitment of federal agencies to uncover and prosecute such schemes.