A group of five Orlando residents find themselves facing serious charges after a federal indictment alleges they facilitated a complex scheme to dodge payroll taxes and workers’ compensation requirements in the construction industry. United States Attorney Roger B. Handberg detailed the charges against individuals Eduardo Anibal Escobar, Carlos Alberto Rodriguez, Adelmy Tejada, Rene Mauricio Escobar, and Juana Nelida Escobar, ranging from conspiracy to commit wire fraud to tax fraud, as reported by the U.S. Department of Justice.
Each count of wire fraud could potentially lead to 20 years in federal prison, with tax fraud counts carrying a maximum of 5 years imprisonment. The federal government is also pushing for the forfeiture of at least $19 million and five residential properties in Orlando, believed to be the proceeds from these wire fraud offenses. The Justice Department's release outlines the establishment of companies by the defendants, supposedly providing labor to construction contractors while skirting Florida's mandatory workers’ compensation insurance for construction workers.
Among the alleged fraudulent activities, the indictment cites the defendants’ applications for workers’ compensation policies for a mere fraction of their employees and payroll, enabling them to enter into agreements and falsifying documents to showcase the workers as company employees. Contractors wrote paychecks to the defendants’ companies, which were deposited and cashed out to pay workers after skimming off a service fee. This transactional sleight of hand allowed various parties to renounce responsibility for essential payroll taxes and insurance provisions.
Over the affair's course, the indictment accuses the defendants of depositing more than 46,000 payroll checks totaling upwards of $292 million, from which they retained no less than $19 million in fees. The IRS was left high and dry, with at least $52 million in unpaid payroll taxes. Had the insurance carriers been aware of the full payroll amount, they would have demanded additional premiums estimated at $28 million, according to the indictment. This case emerges amid a broader investigation into the use of shell companies and "ghost" employees with Homeland Security Investigations, according to the U.S. Department of Justice. The Internal Revenue Service –Criminal Investigation, and the Florida Department Department of Financial Services joining forces. The prosecution falls to Assistant United States Attorney Arnold B. Corsmeier, while Assistant U.S. Attorney Jennifer M. Harrington handles asset forfeiture.
