BOSTON (WHDH) - The owner of a Revere towing company was charged Wednesday with engaging in an under-the-table payroll fraud scheme that defrauded the government of more than $3.3 million, officials said.
Gennaro Angiulo, 49, of Nahant and Saugus, was charged by Information with one count of willful failure to collect and pay over taxes and one count of evading cash transaction reporting requirements.
Prosecutors allege that for tax years 2014 through at least 2017, Angiulo allegedly paid a portion of the wages to employees of his company, GJ Towing, in cash “under the table.”
In doing so, they say Anguilo did not collect, account for, or pay over to the IRS required withholding and FICA taxes. The cash payments to employees were funded, at least in part, by cashing checks from clients of GJ Towing and other third parties in groups totaling not more than $10,000 in a single day.
The charge of willful failure to collect and pay over taxes provides for a 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, whichever is greater. The charge of evading cash transaction reporting requirements provides for a sentence of up to 10 years in prison, up to five years of supervised release, a fine of $500,000, and forfeiture.
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