A Honduran illegal alien has been sentenced to eight years in federal prison after admitting his role in an $89 million payroll fraud operation that enabled illegal alien construction workers and their employers to evade payroll taxes and other legal requirements.

Announcing the sentence, Assistant Attorney General Colin McDonald said the case exposed a far-reaching scheme that cost taxpayers tens of millions of dollars while facilitating the employment of illegal aliens.

“Today, we held an illegal alien from Honduras accountable for a brazen scheme that stole more than $38 million from American taxpayers to facilitate the employment of illegal aliens,” Assistant Attorney General Colin McDonald said.

“This case exposes how unchecked illegal immigration fuels widespread payroll tax fraud and underground economies that harm American workers and taxpayers,” McDonald said. “This sentence sends a strong message: Those who exploit our open borders, cheat the U.S. Treasury, and violate federal laws will face justice.”

According to the Department of Justice, Mario Flores, an illegal alien from Honduras, conspired with others between 2015 and 2022 to establish a network of shell companies that operated an illegal check-cashing and cash courier business.

Federal prosecutors said the companies processed approximately $89 million in checks for construction subcontractors, charging fees for converting the checks into cash. Authorities said the arrangement allowed contractors and subcontractors to pay workers off the books, avoid withholding payroll taxes, and employ individuals without regard for whether they were legally authorized to work in the United States. Investigators also alleged that Flores caused false tax documents to be filed with the IRS to conceal the operation.

Prosecutors further said Flores and his associates defrauded workers’ compensation insurance carriers by leasing insurance certificates to contractors and providing insurers with false information, including inaccurate figures regarding the number of employees covered and the wages they received.

“Homeland Security Investigations is committed to protecting the integrity of our financial system and enforcing our nation’s laws,” HSI’s John Condon said. “Those who orchestrate large-scale payroll tax fraud and facilitate the illegal employment of unauthorized workers will be held accountable.”

Flores pleaded guilty to one count of conspiracy to defraud the United States and one count of conspiracy to operate an unlicensed money-transmitting business.

Three of Flores’ co-conspirators—Iris Villafranca, Osman Zapata, and Francisco Alvarez—had already been sentenced in the case. Their prison terms ranged from four years to 17 years.

{Matzav.com}