Oct 30, 2015 3 min read

Washington School District finally won its fight to collect thousands in back taxes from an East Washington resident.

The home of George Retos Jr. will be put up for U.S. marshal’s sale Nov. 17.

The school district sued to collect taxes owed for the years 2004, 2005, 2006 and 2007 and filed liens against the property. In April 2009, the common pleas court entered judgment in favor of the school district for $28,300, the principal amount of the delinquent real estate taxes due.

Retos went to court in 2011 to stop the district from bidding on his East Washington home at a sheriff’s sale for owing thousands of dollars in unpaid taxes. The district wanted to buy the stately property at 103 LeMoyne Ave., and resell it to recoup lost tax revenue.

A judge ruled against Retos in November 2012 and found he owed more than $51,000. The case was moved to federal court because Retos owes the Internal Revenue Service more than $1 million. The court ruled in favor of the school district in February and authorized sale of the property free and clear for marshal’s sale in October.

In order to hold the sale, the federal government removed federal liens against the property, according to Ken Baker, school solicitor. The total amount now due to the school district and East Washington is more than $158,000.

Baker said the district is prepared to bid as much as $150,000 for the property, which has an assessed value of $51,783.

“If necessary, the school district might bid up to the taxes, just to make sure if anyone else is going to bid, they pay at least that,” Baker said. “If no one bids beyond taxes, we would buy it.”

According to Baker, the federal government could take the proceeds from the sale, but usually yields to local municipalities.

In 2010, Retos agreed to pay more than $1 million in back taxes to settle a lawsuit by the IRS. In 2012, he sued, claiming they waited too long to collect, but dropped the lawsuit a month later.

Retos surrendered his law license and was convicted in 1993 on federal charges of tax evasion, mail fraud, transfer of a stolen security and bank fraud. He served time in a federal prison.

Chris Furman, an attorney who represented Retos in several matters, responded in an emaihe was not very involved with the case because of an vehicle accident. A recorded message on Retos’ telephone number said his mailbox was full.

An order of sale from the Department of Justice states all persons occupying the property must vacate within 30 days of the order of sale.

“If any person fails or refuses to leave and vacate the property by the time specified in this order, the marshal and his (her) deputies are authorized and directed to take all actions that are reasonably necessary to bring about the ejectment of those persons,” the order states.

Retos also has a criminal case scheduled in early December in Washington County Court. Judge Gary Gilman, in an order filed last week, noted a postponement Retos had requested to give him time to obtain an attorney.

Retos was charged in 2013 by Peters Township police with accepting more than $87,000 in checks from his girlfriend’s mother and failing to repay the money. He is accused of depositing the money into an account of his business, Prime Plastics of Washington. He is free on unsecured bond.

“If the parties are unable to resolve the issues, then the court will set a jury selection date for the December trial term,” Gilman ordered.