Diaz Gets Over a Year for Wage Theft & Tax Evasion

PHOENIX, AZ – Ismary Diaz, 56, of Phoenix, Arizona, is headed to federal prison after being sentenced to 12 months and 1 day for deliberately dodging taxes and stiffing her workers. U.S. District Judge Douglas L. Rayes handed down the sentence on October 17, 2016, following Diaz’s guilty plea to willful failure to collect or pay tax and failure to pay minimum wage. This wasn’t a simple oversight; it was a calculated scheme to line her pockets at the expense of both the government and her employees.

Grimy Times has learned that from 2009 through March 2013, Diaz operated five Phoenix-area restaurants while systematically underreporting income and illegally employing undocumented aliens. The scheme wasn’t just about avoiding payroll taxes; it was a wholesale disregard for labor laws. Diaz knowingly failed to pay her employees the federal minimum wage, exploiting a vulnerable workforce and banking the difference.

The numbers paint a stark picture of Diaz’s greed. She failed to remit over $288,000 in taxes to the federal government and shorted her employees over $89,000 in wages. This wasn’t a victimless crime. Families struggled, the government lost crucial revenue, and Diaz profited handsomely from her illegal operation. The investigation revealed a pattern of intentional deception designed to maximize her profits.

Federal investigators didn’t just stumble upon this; it was a coordinated takedown. The case was a collaborative effort involving IRS-Criminal Investigation (IRS-CI), the Department of Labor (DOL), Homeland Security Investigations (HSI), the FBI, and the Phoenix Police Department. This multi-agency approach underscores the seriousness of the offenses and the commitment to holding those who exploit others accountable.

Assistant U.S. Attorneys Monica Edelstein and Robert Brooks, of the District of Arizona, Phoenix, successfully prosecuted the case. They presented a compelling case demonstrating Diaz’s intentional wrongdoing. The case number is CR-16-455-PHX-DLR, and the release number is 2016-091_Diaz. While a year plus a day is a start, it remains to be seen if this sentence will truly deter others from engaging in similar predatory practices.

The U.S. Attorney’s Office for the District of Arizona continues to crack down on financial crimes and labor violations. For more information, visit http://www.justice.gov/usao/az/. Follow them on Twitter @USAO_AZ for the latest updates. Grimy Times will continue to follow this case and report on any further developments.

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