BOSTON — The owner of a Revere towing company was sentenced Thursday on charges of engaging in an under-the-table payroll fraud scheme that defrauded the government of more than $3.3 million, the U.S. Attorney’s office said.
Gennaro Angiulo, 49, of Nahant and Saugus, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 42 months of probation with 18 months of home confinement and was also ordered to pay restitution of $1,769,486 and forfeiture of $430,000.
Woodlock also ordered Angiulo to complete 40 hours of community service per week during his term of home confinement and forbade him from being involved in his business, G/J Towing, during this time period. The government recommended a sentence of 27 months in prison.
In November 2020, Angiulo pleaded guilty to one count of willful failure to collect and pay over taxes and one count of evading cash transaction reporting requirements, prosecutors said.
From 2014 through at least 2017, Angiulo paid a portion of wages owed to G/J Towing employees “under the table” and in cash. In doing so, Angiulo did not collect, account for, or pay over to the IRS required withholding and FICA taxes, prosecutors said.
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, prosecutors said.
The case was prosecuted by Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit.
