ORLANDO, Fla. – Four Honduran nationals were indicted last week in Florida over an illegal payroll system that was used to help undocumented immigrants work in the country, according to the U.S. Department of Justice.
In a release, DOJ officials said that the system was “off-the-books,” aimed at helping construction workers avoid paying employment taxes to the IRS and to defraud workers’ compensation insurance companies.
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“Through the scheme, the conspirators facilitated the employment of undocumented aliens working illegally in the United States,” the release reads.
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DOJ officials identified the four suspects as follows:
- Iris Villafranca
- Mario Flores
- Osman Zapata
- Cristofer Oseguera Giron
According to investigators, the scheme was in motion between 2015 and 2022, with the four suspects using shell companies to run an unlicensed check-cashing and cash courier service.
In all, that business cashed around $89 million in checks from subcontractors in the construction industry, investigators explained.
“As a fee for their services, the defendants allegedly charged a percentage of the dollar amount of the checks they cashed,” the release continues.
As a result, the scheme allowed construction contractors and subcontractors to pay their workers in cash without worrying about payroll taxes or whether the workers were legally allowed to work in the country, investigators added.
Investigators also accused Villafranca of filing false individual income tax returns between 2019 and 2022, failing to report all the income she earned from the scheme and rental income she earned from her real estate.
Now, all four suspects face charges of conspiracy to operate an unlicensed money transmitting business and conspiracy to defraud the U.S. Villafranca faces additional charges of conspiracy to commit wire fraud and filing false tax returns.
If convicted on all counts, Villafranca faces up to 33 years in prison.
Meanwhile, Flores, Zapata and Giron face up to 10 years in prison if convicted on all charges.