For Immediate Release - February 10, 2010

Attorney General Martha Coakley's Office Announces Indictment of Medford Man in Connection with Allegedly Stealing Millions of Dollars From Former Employer and Clients

BOSTON - Today, a Suffolk County Grand Jury returned indictments against a Medford man in connection with allegedly stealing millions of dollars from his former employer and covering those thefts by overbilling two companies with whom he conducted business. George Papadopoulos, age 48, is charged with Larceny over $250 (4 counts), and Procurement Fraud.

In May 2009, the Attorney General's Office began investigating Papadopoulos's alleged activities. Papadopoulos worked at a large construction management company in the Greater Boston area, and was a vice president from 2007 until his departure in January 2009. Authorities allege that during a four-year period between 2004 through 2008, Papadopoulos regularly submitted requests for expense reimbursements to his employer. He certified that each of these reimbursements was for legitimate business expenses that he had incurred. However, investigators discovered that Papadopoulos routinely submitted reimbursement requests that contained fake receipts, invoices, and correspondence. The company relied on Papadopoulos's alleged fraudulent documentation and paid him several million dollars in reimbursements.

Investigators discovered that Papadopoulos hid these thefts by subsequently overbilling two clients that used the construction services of his former employer. Investigators discovered that the bills he sent to these two clients allegedly contained falsified expenses and labor that roughly equaled the amount he stole from his former employer.

After being terminated from the construction company, Papadopoulos began working for another construction management company. Upon being hired, Papadopoulos's new employer offered to reimburse him for moving expenses. Authorities allege that Papadopoulos stole a total of $15,000 from the new employer by submitting fraudulent expense reports and invoices for moving expenses that he did not actually incur.

On December 12, 2009, Papadopoulos was arrested at his residence in Medford by Massachusetts State Police assigned to the Attorney General's Office. He was arraigned on December 14, 2009, in Boston Municipal Court where he entered a plea of not guilty. Judge David Poole set bail at $25,000, which Papadopoulos subsequently posted. Today, a Suffolk County Grand Jury returned indictments against Papadopoulos. He is scheduled to be arraigned in Suffolk Superior Court on February 23, 2010.

The case is being prosecuted by Assistant Attorneys General David Waterfall and Marc Jones of Attorney General Coakley's Corruption and Fraud Division and was investigated by Financial Investigators Mark Pulli and James McFadden, along with assistance from the State Police assigned to the Attorney General's Office.