Two men from Florida have found guilty guilty of federal charges for their role in years of off-the-books payroll schedule that resulted in almost $ 10 million in tax losses and made the illegal work of employees without papers possible in the construction sector.
Michael Mayorga and Francisco Alvarez were guilty of supplications for magistrate judge Leslie Hoffman Price of the Midden -district of Florida. The arguments still have to be accepted by an American court of the district court.
According to judicial documents and statements made before the court, Mayorga and Alvarez created a network of Shell companies from 2015 to 2022, together with non-mentioned fellow people with which they had a non-permit-check and courier company. These Shell entities cashed in around $ 89 million in checks from subcontractors of construction, which in turn used the money to pay for employees of the books – of whom many immigrants worked illegally in the United States without papers.
Mayorga provided accounting and tax preparation services to some of the Shell companies, while Alvarez and others handled the physical distribution of the money to subcontractors. In addition to the non -reported cash payments, both men were involved in the preparation and submission of false tax returns and documents, which hidden the regulation of both the IRS and the insurance companies.
The actions of Mayorga caused a tax loss of $ 8,647,824 for the IRS. The role of Alvarez resulted in an extra $ 2,331,731 in lost tax revenues.
In addition to the tax fraud, Alvarez submitted an application for false employee insurance, where artificially low insurance premiums for the Shell companies are obtained. He then ‘rented’ this insurance cover to subcontractors, so that they can falsely claim valid insurance when offering construction. Mayorga also supplied fraudulent documents to insurance companies during audits to hide the scheme.
The charges against the two men have a maximum fine of five years in prison, together with guided release, refund and monetary fines. The conviction is determined by a federal court of the court on the basis of American guidelines for conviction and other legal factors.
The research was conducted by IRS Criminal Investigation and Homeland Security Investigations. The case is prosecuted by senior process adviser Sean Beaty, process lawyers Kavitha Bondada and Rebecca A. Caruso from the tax department of the Ministry of Justice, and Assistant -Marican lawyer Amanda Daniels for the Middle District of Florida.
The charges and the guilty arguments reflect the continuous efforts of the Ministry of Justice to combat tax evasion of employment and insurance fraud within the construction sector, in particular regulations that include the use of Shell companies and the exploitation of labor without paper.
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