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NEW ROCHELLE, NY – James Pavlounis, a local valet operator, is headed to federal prison after being sentenced to 37 months for a brazen, 12-year rip-off of the Social Security Administration and the IRS. The feds say Pavlounis pocketed $646,370 in disability benefits he didn’t deserve while simultaneously raking in cash from his valet parking businesses.
Prosecutors laid out how Pavlounis, starting in 2013, falsely claimed he was unable to work to get Social Security payments. He conveniently ‘forgot’ to mention the steady income flowing from his valet service. But the scam didn’t stop there. From 2018 to 2022, Pavlounis systematically hid profits from Select Parking Systems Inc. (SPS), one of his valet companies, dodging $248,810 in corporate income taxes.
The scheme involved fronting a family member as the owner of SPS and funnelling personal expenses through the business to mask the true profits. Pavlounis pleaded guilty before U.S. District Judge Philip M. Halpern, who handed down the sentence today. US Attorney Jay Clayton stated Pavlounis exploited crucial systems and will be held accountable. The total take from Pavlounis’ fraudulent activities exceeds $895,000.