Louisiana Contractor Admits IRS Scam

NEW ORLEANS, LA – Randall Lackey, a Jefferson Parish man with ties to two Louisiana construction firms, admitted in federal court today to a years-long conspiracy to cheat the Internal Revenue Service. The scheme involved concealing both his own earnings and the wages of others, painting a clear picture of brazen tax evasion and potential exploitation of vulnerable workers.

Court documents reveal that from 2011 to April 2018, Lackey, an employee of SES Construction Consulting Group (SES) and Global Technical Solutions (GTS), funneled his paychecks through R&O Renovations and Reconstructions (R&O), a shell company he controlled. He then systematically failed to file either corporate or personal income tax returns for R&O, effectively vanishing his income from the IRS’s radar. The conspiracy didn’t stop there. Co-conspirators falsely classified Lackey as an independent contractor – not an employee – allowing SES and GTS to avoid paying employment taxes on his earnings.

The scheme deepened with the deliberate hiring of workers lacking legal authorization to work in the United States. These individuals were paid “off the books” in cash, bypassing payroll taxes and any semblance of worker protections. This isn’t just about dodging taxes; it’s about exploiting a vulnerable population and creating an unfair playing field for legitimate businesses. The full extent of the wages paid to undocumented workers remains under investigation.

Lackey now faces a sentencing hearing on March 16, 2022, where he could receive a maximum sentence of five years in prison, along with supervised release, restitution payments, and significant monetary penalties. The final sentence will be determined by a federal district court judge, taking into account U.S. Sentencing Guidelines and other relevant legal factors. This case underscores the Justice Department’s commitment to pursuing those who attempt to undermine the integrity of the tax system.

Lackey isn’t acting alone. Randy Farrell, the current owner of SES and GTS; Mathew Reck, the former co-owner; and two additional employees – Dawn Farrell Ruiz and David Farrell (Randy Farrell’s sister and brother) – have already pleaded guilty to the same conspiracy. Reck is slated for sentencing on January 12, 2022, while Randy Farrell, David Farrell, and Farrell Ruiz are scheduled to appear before the court on February 9, 2022. The web of deceit appears to run deep within these companies.

The investigation is being spearheaded by IRS-Criminal Investigation, with prosecution handled by Trial Attorneys William Montague and Parker Tobin of the Justice Department’s Tax Division, and Assistant U.S. Attorney Nicholas Moses of the Eastern District of Louisiana. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Eastern District of Louisiana jointly announced the guilty plea, signaling a continued crackdown on financial crimes in the region.