Former Peabody Business Owner Sentenced, Fined For Tax Fraud

Peabody MA

30 March, 2022

5:58 PM

Description

PEABODY, MA — A former Peabody construction business owner was sentenced to 18 months in prison and ordered to pay more than $1.5 million in restitution after pleading guilty to tax fraud charges in federal court. Argyrios Mavros, 37, who owned Mavros Construction, Inc., was sentenced in a scheme to defraud the IRS of payroll tax payments and defraud his workers' compensation insurance carrier of premium payments. U.S. District Court Senior District Court Judge William Young sentenced Mavros to an additional 18 months of supervised release and ordered him to pay the restitution to IRS and his workers' compensation carrier. He pleaded guilty on Nov. 1, 2021, to 10 counts of failure to collect or pay taxes and one count of mail fraud. The Department of Justice said Mavros cashed more than $3.3 million in customer checks at a Peabody cash-checking business and used some of those funds to pay employees cash instead of via payroll. He then failed to report the earnings in quarterly corporate tax filings in what authorities said was an effort to avoid paying Social Security and Medicate taxes and allow for federal tax withholdings. The Department of Justice said Mavros failed to pay taxes on more than $2.5 million in wages — resulting in federal tax-revenue fraud of more than $1 million. By failing to report the employees to the workers' compensation carrier, the DOJ said he defrauded it of more than $150,000 in premium payments as well.