BODY:
A Honduran national has been caught in a massive off-the-books payroll scheme that left the US government with a whopping $38 million in losses. Mario Lisandro Flores Moradel, 45, pleaded guilty to conspiring with others to defraud the IRS and workers’ compensation insurance companies.
According to court documents, Flores operated an illicit cash payroll system for construction workers from 2015 to 2022, allowing contractors and subcontractors to pay their workers in cash without making required payroll taxes. This scheme also enabled the employment of illegal aliens working in the US. Flores and his co-conspirators used a series of shell companies to run an unlicensed check cashing and cash courier service business, cashing approximately $89 million in checks from subcontractors.
The scheme allowed construction companies to avoid paying employment taxes to the IRS and to defraud workers’ compensation insurance companies. Flores and his co-conspirators also caused the filing of false tax documents with the IRS to conceal the scheme. The investigation into this case is ongoing, but it’s clear that Flores and his associates thought they could get away with this massive scam.
Flores’ guilty plea is a significant blow to his operation, but the full extent of the damage remains to be seen. The US government is still reeling from the losses incurred due to this scheme, and it’s likely that more individuals will be brought to justice in the coming months. For now, Flores is facing the consequences of his actions, and it’s a reminder that no one is above the law.
Flores is set to be sentenced at a later date, but with a guilty plea already on the table, it’s likely that he’ll face significant prison time. The exact sentence will depend on the judge’s discretion, but one thing is certain: Flores will have to answer for his crimes.
Source: Department of Justice
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