![[US] Honduran nationals accused of $89m illegal immigrant payroll scheme](http://gpa.net/cdn/shop/articles/bigstock-Facade-Flags-Robert-F-Kennedy--317612377_7060dbe6-25c8-4f9e-b529-cea3fbb05823_1200x.jpg?v=1747330436)
Four Honduran nationals have been indicted in Florida for a multi-million-dollar off-the-books payroll system for undocumented construction workers, 4 News reports.
The scheme allowed the defendants to avoid paying employment taxes to the IRS and defrauded workers' compensation insurance companies, according to the U.S. Department of Justice (DOJ).
The DOJ’s press release reportedly said that the defendants, Iris Villafranca, Mario Flores, Osman Zapata, and Cristofer Oseguera Giron, were booked for conspiracy to operate an unlicensed money transmitting business and conspiracy to defraud the United States.
Officials report that Ms Villafranca was also charged with conspiracy to commit wire fraud and filing false tax returns.
The indictment states that from 2015 to 2022, the four Honduran nationals used shell companies to run an unlicensed cheque-cashing and cash courier business that cashed around $89 million in cheques from construction subcontractors.
The subcontractors paid their workers under the table in cash, and as a fee for their service, the defendants allegedly charged a percentage on top, the indictment said.
Officials allege that the defendants filed false tax documents to conceal the scheme. They also reportedly provided false information to insurers about the number of workers covered by the insurance and the amount workers were paid.
If convicted, Ms Villafranca could face up to 30 years with an additional maximum penalty of three years for each count of filing false tax returns.
The remaining defendants, Flores, Zapata, and Giron, will face a maximum penalty of five years for conspiracy to operate an unlicensed money transmitting business, and a maximum penalty of five years imprisonment for conspiracy to commit tax fraud.
Source: 4 News
Four Honduran nationals have been indicted in Florida for a multi-million-dollar off-the-books payroll system for undocumented construction workers, 4 News reports.
The scheme allowed the defendants to avoid paying employment taxes to the IRS and defrauded workers' compensation insurance companies, according to the U.S. Department of Justice (DOJ).
The DOJ’s press release reportedly said that the defendants, Iris Villafranca, Mario Flores, Osman Zapata, and Cristofer Oseguera Giron, were booked for conspiracy to operate an unlicensed money transmitting business and conspiracy to defraud the United States.
Officials report that Ms Villafranca was also charged with conspiracy to commit wire fraud and filing false tax returns.
The indictment states that from 2015 to 2022, the four Honduran nationals used shell companies to run an unlicensed cheque-cashing and cash courier business that cashed around $89 million in cheques from construction subcontractors.
The subcontractors paid their workers under the table in cash, and as a fee for their service, the defendants allegedly charged a percentage on top, the indictment said.
Officials allege that the defendants filed false tax documents to conceal the scheme. They also reportedly provided false information to insurers about the number of workers covered by the insurance and the amount workers were paid.
If convicted, Ms Villafranca could face up to 30 years with an additional maximum penalty of three years for each count of filing false tax returns.
The remaining defendants, Flores, Zapata, and Giron, will face a maximum penalty of five years for conspiracy to operate an unlicensed money transmitting business, and a maximum penalty of five years imprisonment for conspiracy to commit tax fraud.
Source: 4 News