GRIMY TIMES EXCLUSIVE: Alexis Garcia of Naples, Florida, has pleaded guilty to orchestrating a massive off-the-books payroll scheme that siphoned millions from federal coffers and workers’ compensation insurance companies. Between 2017 and 2019, Garcia, the ringleader of Tape Drywall Services Inc., managed a clandestine cash payroll system for construction workers, dodging employment taxes due to the IRS while duping workers’ comp insurers.
The court documents reveal that Garcia and his co-conspirators cashed over 3,600 checks totaling approximately $28 million. They pocketed a small fee from each transaction, then distributed the remaining cash to foremen, who in turn paid the workers under the table. This clandestine operation went undetected until Garcia’s embezzlement caused a staggering loss of more than $4.2 million to the U.S.
The plea deal must be approved by a federal district court judge, who will determine Garcia’s sentence at a later date. The disgraced contractor faces up to five years in prison, supervised release, restitution, and monetary penalties. The IRS Criminal Investigation division is leading the probe into this elaborate fraud scheme, with assistance from Homeland Security Investigations.
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 are prosecuting Garcia. The timely payment of employment taxes is crucial to the U.S. government, as these funds are the lifeblood of Social Security and Medicare programs.
As Garcia awaits sentencing, the grimy truth of his financial chicanery serves as a stark reminder of the impact white-collar crime can have on both the economy and individual workers.
RELATED: Florida Contractor Admits $28M Tax Dodge
RELATED: Phoenix Drug Kingpin Pleads Guilty in Fentanyl, Methamphetamine Ring
Related Federal Cases
- Miami Clinic Owner Pleads Guilty to $5.3M HIV Fraud Scheme · Alabama
- Massachusetts Woman Pleads Guilty to Bank Fraud Scheme · Massachusetts
- Croteau Sentenced for $1.9M IRS Fraud Scheme · Florida
- Martin Pool Sentenced for Investment Fraud Scheme in Utah · Utah
- Toledo Men Accused of $23M Dinar Fraud Scheme · Ohio
Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News