A Honduran national living illegally in the United States has been sentenced to over two years in federal prison for orchestrating a complex scheme to defraud workers’ compensation insurance providers and evade taxes.
Pablo Isila Euceda-Hernandez, 36, was sentenced to 27 months in prison and ordered to pay over $1.5 million in restitution and money judgments. He pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit tax fraud.
READ: Meth-Fueled Carpet Cleaner Caper Lands Winter Haven Man In Jail
Euceda-Hernandez created a shell company and obtained a workers’ compensation insurance policy for a minimal payroll. He then “rented” this insurance to construction work crews in various parts of Florida, often composed of undocumented workers, who needed proof of coverage to secure subcontracts. This allowed the crews to avoid the higher cost of obtaining adequate insurance for their actual workforce.
The scheme also involved contractors issuing payroll checks to Euceda-Hernandez’s shell company, which he cashed and distributed to the workers after deducting a fee. This process facilitated tax evasion, as neither the shell company nor the contractors reported the wages or paid payroll taxes, resulting in over $1.2 million in unpaid taxes.
“Under-the-table cash payroll schemes, especially those designed to pay illegal immigrants not authorized to work in the United States, jeopardizes the integrity of the construction industry and undermines the legal framework intended to protect workers and ensure fair business through legal and ethical standards,” said Tim Hemker, Homeland Security Investigations (HSI) Jacksonville assistant special agent in charge. “HSI, through our strong law enforcement partnerships, is committed to uncovering the schemes of criminals and ensuring that justice is served for those who seek to exploit the system.”
READ: Florida Woman Celebrates $2 Million Lottery Scratch-Off Win On Ticket From Publix
“This defendant cheated. He cheated their employees, the U.S. taxpayers, and most importantly the free-market principles which govern our society,” said Ron Loecker, Special Agent in Charge of IRS-Criminal Investigation’s Tampa Field Office. “By breaking the law, Euceda-Hernandez sought an unfair advantage to all their competitors who played by the rules and will now contemplate their actions from prison. We want to ensure a level playing field for the business owners doing things the right way. To those who think they can get away with this type of behavior, no matter what steps you take to cover your tracks, we will find out, and do everything we can to bring you to justice.”
This case was investigated by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation, and the Florida Department of Financial Services. It was prosecuted by Assistant United States Attorney John Cannizzaro.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.