New Rochelle Valet Grifter Gets 37 Months in Federal Prison

New Rochelle con man James Pavlounis is trading in car keys for prison bars after being sentenced to 37 months behind bars for a brazen, decade-long scheme to defraud the Social Security system and evade taxes. The 53-year-old owner of Select Parking Systems wasn’t just providing a service; he was running a sophisticated operation built on lies and stolen funds, federal prosecutors revealed in court today.

Pavlounis’s deception began in January 2013, when he falsely claimed total disability, allowing him to illegally siphon $646,370 in Social Security benefits. While publicly portraying himself as unable to work, Pavlounis was actively managing and profiting from Select Parking Systems, a valet service operating in Westchester County. The audacity of the scheme – collecting disability while *actively* running a business – clearly infuriated the court. Investigators say Pavlounis systematically exploited a system designed to help those genuinely in need.

The fraud deepened between 2018 and 2022. Pavlounis didn’t just pocket the disability checks; he actively concealed the profits from his valet business, reporting losses to avoid paying a staggering $248,810 in corporate taxes. To further obscure his scheme, he installed a family member as a “straw owner” of Select Parking Systems, a common tactic used to hide illicit financial activity. The money wasn’t reinvested in the business; it was funneled directly into Pavlounis’s personal accounts, funding a lifestyle built on deception.

U.S. Attorney Jay Clayton’s office didn’t mince words, stating the case highlights the damage caused by benefit fraud and tax evasion. “This wasn’t a momentary lapse in judgment,” a source within the office told this publication. “This was a calculated, prolonged effort to steal from the system and cheat on his taxes. It impacts everyone who relies on these vital programs.” The feds were particularly keen to make an example of Pavlounis, sending a message that such blatant disregard for the law will not be tolerated.

Pavlounis pleaded guilty to charges of Social Security fraud and tax evasion before U.S. District Judge Philip M. Halpern in White Plains federal court. While the sentencing guidelines suggested a range of 33 to 41 months, Judge Halpern landed squarely in the middle, handing down a 37-month prison sentence. He also ordered Pavlounis to pay full restitution – a combined $895,180 – to the Social Security Administration and the IRS. Failure to pay could lead to further penalties and asset seizure.

Beyond the financial implications, Pavlounis’s conviction underscores a growing trend of white-collar crime in the region. Federal investigators are increasingly focusing on cases involving complex financial schemes, particularly those that prey on public assistance programs. Sources indicate the investigation into Select Parking Systems was triggered by a routine audit that flagged discrepancies in reported income. This case serves as a stark warning to others tempted to game the system: the feds are watching, and they’re ready to prosecute.

Defense attorneys argued Pavlounis suffered from personal financial difficulties and made poor decisions under pressure. However, Judge Halpern dismissed these claims, stating the defendant demonstrated a “deliberate and sustained pattern of dishonesty.” Pavlounis remains free on bail pending notification of his report date to a federal correctional facility. His once-lucrative valet business is now shuttered, a monument to greed and deceit.

The case was investigated by the Social Security Administration’s Office of Inspector General and the Internal Revenue Service’s Criminal Investigation division. Assistant U.S. Attorney Christopher J. Clarke handled the prosecution. Pavlounis’s sentence is a reminder that even seemingly ‘victimless’ crimes have real consequences, both for the perpetrator and for the public they defraud.

Source: U.S. Department of Justice