NAPLES, FL – Alexis Garcia, a Florida man, threw in the towel today, pleading guilty to conspiracy to defraud the United States. The charge stems from a brazen, multi-million dollar scheme to skirt payroll taxes and rip off insurance companies, according to court documents unsealed today in the Middle District of Florida. The plea, entered before Magistrate Judge Kyle C. Dudek, still requires acceptance by a U.S. District Court judge, but signals a likely reckoning for Garcia.
Between 2017 and 2019, Garcia allegedly masterminded an illegal, off-the-books cash payroll system for workers at Tape Drywall Services Inc., a Naples-based construction firm. The operation was simple, if audacious: contractors brought in workers, paid through Tape Drywall with legitimate checks, which Garcia and a co-conspirator then cashed. Instead of remitting taxes, the pair pocketed a fee and distributed cash to foremen, who paid the workers – all without a single tax form filed. The scale of the fraud is staggering: over 3,600 checks cashed, totaling approximately $28 million.
The IRS wasn’t the only victim. Garcia and his accomplice systematically misrepresented Tape Drywall’s payroll to workers’ compensation insurance companies, slashing insurance payments and leaving workers vulnerable. The Department of Justice estimates the loss to the United States alone exceeds $4.2 million. This isn’t just about numbers on a spreadsheet; it’s about stolen funding for vital programs like Social Security and Medicare, the lifeblood of the nation.
Federal prosecutors hammered home the importance of tax compliance in court filings. “The timely payment of these taxes is critical to the functioning of the U.S. government,” the DOJ stated. “They are the primary source of funding for Social Security and Medicare.” Garcia’s scheme, they argued, wasn’t just a financial crime, but an attack on the very foundations of public services.
Garcia now faces a maximum sentence of five years in federal prison, along with supervised release, restitution orders, and hefty monetary penalties. The final decision rests with a U.S. District Court judge, who will consider sentencing guidelines and other factors before handing down a punishment. The investigation was spearheaded by IRS Criminal Investigation, with valuable assistance from Homeland Security Investigations.
The case is being prosecuted by Senior Litigation Counsel Michael C. Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Yolande G. Viacava for the Middle District of Florida. Grimy Times will continue to follow this case as it moves toward sentencing, bringing you the latest updates on this brazen example of white-collar crime in the Sunshine State.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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