A construction manager who orchestrated a sophisticated multimillion-dollar embezzlement scheme while maintaining his day job in the industry has been sentenced to 27 months in federal prison. Jose Garcia, 52, of New York, received the sentence for his central role in a $7 million fraud that spanned nearly a decade and involved elaborate shell companies and kickback payments to his co-conspirator.
The Scheme Unfolds
Garcia was sentenced to 27 months in prison for committing two lengthy fraud crimes—a $4.5 million embezzlement crime and a $2.1 million tax evasion crime, according to the U.S. Attorney's Office for the Southern District of New York. In the embezzlement scheme, Garcia had a lucrative no-show job with a technology company from 2012 to 2019, while continuing his legitimate construction career.
The elaborate fraud centered around Garcia's relationship with Mark Angarola, a Global Account General Manager at IT giant DXC Technology who oversaw the company's relationship with a major financial institution client. Garcia did no work whatsoever for the Contractor or Subcontractor, but invoiced the Subcontractor, month after month, requesting payment for purported "Management Fees", as reported by the Department of Justice. At different points in the scheme, Garcia requested monthly payment of $36,000, $45,000, $51,000, or $60,000.
A Web of Corruption
Garcia's fraudulent activities extended far beyond simple billing fraud. Garcia paid Angarola cash kickbacks exceeding $1 million in exchange for the approval of his fake invoices, according to federal prosecutors. The scheme involved multiple family members and friends, including Angarola's wife Allison, Garcia's wife Michelle Cox, and Angarola's assistant Lisa Mincak.
Mark Angarola arranged for the Subcontractor to hire certain of his family members, friends, and subordinates, despite the fact that these individuals — which included a schoolteacher, a homemaker, a police sergeant, and a manager in the construction industry — lacked apparent qualifications to perform deskside IT work, as detailed in the original arrest announcement. These expenses ultimately funded slap-up meals, hotel stays, a cruise, visits to "gentlemen's clubs," and transportation fees including a private car service that gave the Angarolas, their kids, and friends rides to parties, cigar bars, restaurants, and strip bars, according to The Register.
Lavish Lifestyle Funded by Fraud
Financial records reveal that Garcia spent fraud proceeds on, among other things, private school tuition, rent, luxury travel, luxury items, gym memberships, and sports memorabilia, prosecutors stated in court documents. Despite receiving millions through the scheme, Garcia participated in the embezzlement scheme despite having fulltime, gainful employment elsewhere as a consultant and project manager in the construction industry.
Tax Evasion Compounds the Crime
Garcia's criminal conduct extended beyond embezzlement to systematic tax evasion. In the tax evasion scheme, Garcia neither filed tax returns nor paid income taxes from 2011 through 2019, according to federal authorities. This pattern of tax avoidance resulted in a separate $2.1 million tax evasion crime that contributed to his sentence.
Rising Trends in Construction Industry Fraud
Garcia's case reflects broader trends in white-collar crime affecting the construction industry. Embezzlement refers to the misappropriation of funds by someone in a position of trust. The crime involves a breach of trust, which distinguishes it from theft, according to Vitaliano Law. Newly released Federal Trade Commission data show that consumers reported losing more than $12.5 billion to fraud in 2024, which represents a 25% increase over the prior year, as reported by the Federal Trade Commission.
The Southern District of New York has seen several similar construction-related embezzlement cases in recent years. A New York construction executive was sentenced today in Manhattan federal court to 51 months in prison for evading taxes on more than $1.8 million in bribes he received from building subcontractors, according to previous Department of Justice cases.
Similar Regional Cases
The pattern of construction industry fraud extends beyond individual cases. Recent prosecutions in the region have included various schemes involving bribery, tax evasion, and embezzlement. NUNES, 59, of Yonkers, New York, pled guilty to one count of tax evasion, which carries a maximum sentence of five years in prison, and six counts of subscribing to false tax returns, in a separate construction contractor case, as reported by the Southern District of New York.
Co-Conspirators Face Justice
Garcia's sentencing is part of a larger prosecution that has netted multiple defendants. The Conspirators fraudulently obtained at least the following approximate amounts through this scheme: $1,468,215 to Mark Angarola; $751,641 to Allison Angarola; $4,554,950 to Jose Garcia and entities he controlled; $335,500 to Michelle Cox; $88,793 to Lisa Mincak, according to federal prosecutors. Three other members of the embezzlement conspiracy have also pled guilty to date.
The conspiracy involved sophisticated methods to disguise the fraudulent payments. Garcia also used nominee corporate and limited liability entities to further disguise his receipt of funds for purported work performed under the Subcontract, including for alleged "Management Fees" due, as detailed by IRS Criminal Investigation.
Legal Implications and Precedent
Garcia previously pled guilty to wire fraud conspiracy and tax evasion before U.S. District Judge Dale E. Ho, who imposed today's sentence, according to court records. The case demonstrates the federal government's commitment to prosecuting complex financial crimes that cross industry boundaries.
The scheme's connection to major corporations highlights vulnerabilities in subcontracting relationships. According to DXC, Angarola directed the hiring on consultants who he knew personally and had those individuals submit fabricated time sheets and expenses to Atlas for payment by DXC, as revealed in related civil litigation. The civil case between Atlas Communications and DXC Technology provides additional context about the business relationships that enabled the fraud.
Point Lookout Community Impact
The arrests of Mark and Allison Angarola occurred in Point Lookout, New York, a small hamlet in Nassau County. Point Lookout is a hamlet and census-designated place (CDP) located in the town of Hempstead in Nassau County, New York, United States. The population was 1,527 at the time of the 2020 census, according to Wikipedia. Mark and Allison Angarola were arrested earlier this week in Point Lookout, New York, and presented in Manhattan federal court, as reported by Shore News Network.
The case underscores how sophisticated financial crimes can emerge from seemingly ordinary business relationships and affect communities far from major financial centers. Garcia's 27-month sentence serves as a reminder that federal prosecutors are actively pursuing complex embezzlement schemes that involve multiple defendants and span several years.
