Two Orlando Men Sentenced in $148 Million Construction Payroll Fraud Scheme Targeting IRS and Workers’ Comp Insurers

Federal prosecutors say two Orlando residents were sentenced for operating a massive off-the-books construction payroll scheme that funneled nearly $149 million through shell labor arrangements to evade payroll taxes and workers’ compensation costs.

Authorities said the scheme enabled subcontractors to underreport payroll, avoid insurance premiums, and employ undocumented workers. The defendants were ordered to pay more than $37 million in restitution to the IRS. Investigators said the fraud undercut honest contractors and exposed workers to significant risks. 

Full DOJ Press Release here.