A Florida man has been caught red-handed in a brazen scheme to cheat the system, and now he’s facing the music.
Alexis Garcia, a Florida resident, pleaded guilty today before Magistrate Judge Kyle C. Dudek for the Middle District of Florida to conspiring to defraud the United States by operating an off-the-books payroll scheme.
The plea must be accepted by a U.S. district court judge, but Garcia’s fate is all but sealed. He’s looking at a maximum penalty of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.
According to court documents and statements made in court, Garcia conspired with others to operate an illegal, off-the-books cash payroll system for construction workers to avoid paying employment taxes to the IRS and to defraud workers’ compensation insurance companies.
Between 2017 and 2019, Garcia managed and directed the operations of Tape Drywall Services Inc., located in Naples, Florida. Contractors entered into agreements with Tape Drywall to provide workers for various construction contracts and provided checks in the name of Tape Drywall for payment.
Garcia and his co-conspirator would cash the checks and retain a small percentage as a fee. Garcia and his co-conspirator provided cash to the foremen who used the cash to pay the workers. In total, Garcia and his co-conspirator cashed over 3,600 checks totaling approximately $28 million.
Garcia and his co-conspirator did not report the wages to the IRS and did not withhold Social Security, Medicare, and federal income taxes from those wages, as required by law. As a result, Garcia caused a loss to the United States of more than $4.2 million.
The timely payment of these taxes is critical to the functioning of the U.S. government because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.
Garcia is scheduled to be sentenced at a later date. He faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The IRS Criminal Investigation is investigating the case, with assistance from Homeland Security Investigations.
Sr. Litigation Counsel Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Yolande G. Viacava for the Middle District of Florida are prosecuting the case.
Garcia’s scheme has been exposed, and now he must face the consequences of his actions.
Defendant: Alexis Garcia (Tape Drywall Services Inc.)
Criminal Charges: Conspiring to defraud the United States by operating an off-the-books payroll scheme
City and State: Naples, Florida
Date: (Not specified in the source)
Sentence: Scheduled to be sentenced at a later date, facing a maximum penalty of five years in prison
Dollar Amounts: $28 million in checks cashed, over $4.2 million in losses to the U.S. government
Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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