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New Rochelle, NY – James Pavlounis, 53, is heading to federal prison after admitting to a brazen, decade-long scheme to rip off the Social Security Administration and cheat on his taxes. A judge in the Southern District of New York handed down a 37-month sentence today.
Pavlounis gamed the system from January 2013 to March 2025, falsely claiming he was disabled to collect $646,370 in Social Security benefits. The catch? He was simultaneously running a thriving valet parking business and pocketing the profits – never disclosing a dime to the SSA.
The scam didn’t stop there. For five years (2018-2022), Pavlounis used shell companies and shady accounting to avoid paying corporate income taxes through his firm, Select Parking Systems Inc. (SPS). He made it look like the business wasn’t even his, hiding income and faking losses to dodge roughly $248,810 in taxes. He even put a family member on paper as the owner to muddy the waters.
Prosecutors say Pavlounis used company funds to cover personal expenses, further obscuring his fraudulent activity. U.S. Attorney Jay Clayton’s office made it clear that exploiting public programs and dodging taxes won’t be tolerated.