Three Orlando residents, Eduardo Anibal Escobar, 44, Carlos Alberto Rodriguez, 35, and Adelmy Tejada, 57, all legal permanent residents from El Salvador, have pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit tax fraud, announced United States Attorney Gregory W. Kehoe.
The elaborate scheme, which spanned from approximately January 2015 to August 2024, involved misrepresentations concerning workers’ compensation insurance to facilitate the employment of undocumented workers in the construction industry.
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According to court documents, the defendants registered companies with the State of Florida and obtained workers’ compensation insurance policies based on minimal payroll and a small number of employees. They then misrepresented to construction contractors that numerous subcontractors, primarily undocumented individuals, were employed by their companies and covered by their insurance. This allowed the subcontractors to secure contracts and work for the contractors.
The contractors paid the defendants’ companies for the subcontractors’ work, and the defendants distributed the payroll, keeping 6% to 8% as a fee. Approximately $146,077,535 in payroll flowed through these companies, with the defendants pocketing at least $8,764,652.
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The workers’ compensation insurers, unaware of the actual payroll, unknowingly provided coverage for the inflated amount. Had they known, they would have charged an additional $12,992,908 in premiums. Additionally, neither the defendants, contractors, nor subcontractors reported the payroll to the IRS, resulting in an estimated $36,957,616 in unpaid employment taxes.
As part of their plea agreements, the defendants are subject to forfeiture of at least $8,764,652 in proceeds and two Orlando houses purchased with those funds. They are also required to pay restitution: $12,992,908 to four insurance companies for unpaid premiums, $397,895 to two of those companies for paid workers’ compensation claims, and $36,957,616 for unpaid employment taxes.
Each defendant faces a maximum penalty of 20 years in federal prison for the wire fraud offense and up to 5 years for the tax fraud offense. Sentencing dates have not yet been set.
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