Related Federal Cases
Lakeland Man Sentenced to 33 Months in Federal Prison for Wire Fraud Conspiracy
A Lakeland man has been sentenced to federal prison for his role in a construction-related wire fraud conspiracy. Ramon Paz, 53, was sentenced to 33 months in federal prison for his crime.
According to court documents, Paz owned and managed a construction company that purported to supply construction services and labor for construction contractors and subcontractors. In order to comply with Florida law, Paz’s company was required to secure and maintain adequate worker’s compensation insurance coverage.
Paz’s company had agreements with contractors and subcontractors to use workers purported to be Paz’s employees at construction sites, and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Paz or others would then regularly receive ‘payroll checks’ from contractors that were cashed at various financial institutions to pay Paz’s purported ’employees’ and other related expenses.
During the time period charged, Paz falsely and fraudulently represented in insurance applications that his company had a very limited payroll and a very limited number of employees who worked on construction jobsites. Paz also falsely and fraudulently sent wire communications to numerous contractors representing that his company’s ’employees’ had full worker’s compensation coverage.
In reality, Paz’s company received and cashed more than $21 million in checks from various construction contractors for these purported ’employees.’ These payroll figures far exceeded the very limited payroll figures that Paz had reported to his worker’s compensation insurance company. As a result, these employees, in reality the employees of other entities, performed work on jobsites without adequate insurance coverage.
As a result of these misrepresentations, Paz’s company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties as well.
This case was investigated by Homeland Security Investigations (HSI) and the Florida Department of Financial Services. It is part of a lengthy investigation by those agencies into the use of shell companies and ‘ghost’ employees in the construction industry. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Ramon Paz, a 53-year-old man from Lakeland, was sentenced to 33 months in federal prison for his role in a construction-related wire fraud conspiracy. The court also entered an order of forfeiture in the amount of $500,731, the proceeds of the wire-fraud conspiracy. Paz had pleaded guilty on February 8, 2023.
The exact criminal charges against Ramon Paz include conspiracy to commit wire fraud. The city and state where the crime occurred are Tampa, Florida. The exact date of the crime is not specified in the source, but the sentencing date is February 8, 2023. The sentence or outcome for Ramon Paz is 33 months in federal prison. The dollar amount involved in the crime is $21 million in checks and $500,731 in proceeds of the wire-fraud conspiracy.
Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
