Orlando, FL – Mario Lisandro Flores Moradel pleaded guilty today to conspiracy to commit tax fraud and worker’s compensation fraud, resulting in over $38 million in losses to the U.S. government. Court documents detail Flores Moradel operated an illegal, off-the-books payroll system for construction workers between 2015 and 2022. The scheme aimed to avoid paying employment taxes to the IRS and defrauding workers’ compensation insurers.
Flores Moradel and his co-conspirators utilized a series of shell companies to operate an unlicensed check cashing and cash courier service. These businesses cashed approximately $89 million in checks from construction subcontractors, charging fees for the service. This allowed contractors to pay workers in cash, circumventing required payroll taxes and disregarding legal work authorization status.
The operation also facilitated the employment of individuals illegally working in the United States. Furthermore, Flores Moradel and his associates filed false tax documents with the IRS to conceal the fraudulent activity. Sentencing has not yet been scheduled.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation and Homeland Security Investigations.
Source: Department of Justice