Florida Construction News staff writer
A Naples man pleaded guilty to conspiring to defraud the federal government through an illegal payroll scheme that concealed millions of dollars in wages and skirted employment taxes, federal prosecutors said.
Alexis Garcia admitted in federal court that between 2017 and 2019 he and a co-conspirator operated an off-the-books cash payroll system through Tape Drywall Services Inc., according to the Justice Department.
Prosecutors said Garcia and his partner cashed more than 3,600 checks worth about $28 million. They kept a percentage as a fee and distributed the rest in cash to construction foremen, who in turn paid workers. The wages were not reported to the IRS, and no taxes were withheld for Social Security, Medicare or federal income taxes, causing a loss of more than $4.2 million to the United States, authorities said.
The scheme also involved defrauding workers’ compensation insurance companies by underreporting the company’s payroll, which lowered insurance premiums.
Garcia pleaded guilty before U.S. Magistrate Judge Kyle C. Dudek in the Middle District of Florida. His plea must be accepted by a district judge.
Garcia faces up to five years in prison, along with possible restitution, fines and a period of supervised release. A sentencing date has not been set.
The case was investigated by IRS Criminal Investigation with assistance from Homeland Security Investigations. Senior Litigation Counsel Michael C. Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Yolande G. Viacava are prosecuting the case.
