Florida Construction News staff writer
A years-long off-the-books payroll scheme tied to the construction industry has resulted in a guilty plea from a Honduran national accused of helping contractors evade taxes and workers’ compensation obligations.
According to the U.S. Department of Justice, Mario Lisandro Flores Moradel admitted in federal court to conspiring with others to operate an illegal cash payroll system that caused more than $38 million (U.S.) in losses to the federal government.
Court documents show the scheme, which ran from 2015 to 2022, relied on a network of shell companies that functioned as an unlicensed cheque-cashing and cash courier service. The operation cashed approximately $89 million in cheques from construction subcontractors, charging a fee while enabling employers to pay workers in cash.
Authorities say the arrangement allowed contractors and subcontractors to avoid paying required employment taxes and to bypass workers’ compensation insurance requirements. It also facilitated the hiring of workers not legally authorized to work in the United States.
Flores admitted to personally causing more than $9.4 million in tax losses, prosecutors said. The scheme also involved filing false tax documents with the Internal Revenue Service to conceal the activity.
He pleaded guilty to one count of conspiracy to defraud the United States and one count of conspiracy to operate an unlicensed money-transmitting business. He faces up to five years in prison on each count and is scheduled to be sentenced on June 24.
Several co-conspirators have previously entered guilty pleas, including Michael Mayorga and Francisco Alvarez in May 2025, and Iris Villafranca and Osman Zapata in October 2025.
The case was investigated by IRS Criminal Investigation with assistance from Homeland Security Investigations and multiple federal and state agencies. Prosecutors from the U.S. Attorney’s Office for the Middle District of Florida and the Justice Department’s Criminal Division are handling the case.
