Miami Contractor Sentenced for Employment Tax Fraud
Reynaldo Orozco, a Miami contractor, who owned and operated Rock Construction Builders Inc., from 2004 through 2007 pleaded guilty on March 22, 2011, to one count of filing a false employment tax return. Orozco admitted that he issued corporate checks to other corporations that did not perform any work for his company. He then cashed the checks at local check cashing stores and used most of the cash to pay his employees. He did not report the cash wages on quarterly employment tax returns and did not withhold and pay over employment taxes on the wages.
Rock Construction Builders failed to report approximately $3,294,426 in cash wages to the Internal Revenue Service. Due to the nonreporting, the United States Treasury lost approximately $504,047 in unemployment taxes.
The Department of Justice and IRS announced yesterday that Reynaldo was sentenced to 18 months in federal prison for filing a false employment tax return. He was also ordered to pay $504,047 in restitution to the United States.
If you or someone you know is facing indictment by the Federal Government, please call one of our federal defense attorneys at The Mace Firm to schedule a free consultation.
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