Towing company owner sentenced for tax fraud and evading cash transaction reporting

 

Date: March 19, 2021

Contact: newsroom@ci.irs.gov

BOSTON — The owner of a Revere towing company was sentenced yesterday on charges of engaging in an under-the-table payroll fraud scheme that defrauded the government of more than $3.3 million.

Gennaro Angiulo, 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 ordered to pay restitution of $1,769,486 and forfeiture of $430,000. Judge Woodlock also ordered that Angiulo complete 40 hours of community service per week during his term of home confinement and not be involved in running his business, GJ 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.

For tax years 2014 through at least 2017, Angiulo paid a portion of the wages to employees of GJ Towing, in cash "under the table." In doing so, Angiulo 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.

Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service's Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Mendell's Securities, Financial & Cyber Fraud Unit prosecuted the case.