Tampa Republic

United States Attorney Roger B. Handberg has announced indictments against five Orlando residents, Eduardo Anibal Escobar, Carlos Alberto Rodriguez, Adelmy Tejada, Rene Mauricio Escobar, and Juana Nelida Escobar. The individuals face charges of conspiracy to commit wire fraud and tax fraud. If convicted, they could each face up to 20 years in federal prison for wire fraud and up to 5 years for tax fraud. Additionally, the U.S. government seeks forfeiture of at least $19 million and five residential properties in Orlando.

The indictment alleges that the defendants created companies purportedly supplying labor for construction contractors. Under Florida law, businesses in construction must have workers’ compensation insurance. The accused reportedly secured such insurance for a minimal number of employees while engaging undocumented workers through agreements with construction crews. They allegedly misrepresented these workers as company employees to secure contracts from construction firms.

The payroll checks from contractors were deposited into accounts controlled by the defendants' companies before cash or checks were distributed to work crew leaders after deducting a service fee between 6% and 8%. This process enabled both contractors and work crews to avoid paying necessary payroll taxes and securing proper workers’ compensation coverage.

During the alleged scheme's operation, over 46,000 payroll checks totaling more than $292 million were processed by the defendants' companies. At least $19 million was retained as fees by the defendants without remitting required taxes like Social Security or Medicare to the IRS; unpaid taxes are estimated at over $52 million.

Insurance companies also suffered losses due to underreported premiums on policies meant for over $292 million in payrolls; these premiums would have totaled an additional $28 million had they been correctly reported.

This case is part of an ongoing investigation led by Homeland Security Investigations, IRS Criminal Investigation, and Florida’s Department of Financial Services into shell companies and "ghost" employees within the construction sector. Assistant United States Attorney Arnold B. Corsmeier will prosecute this case with asset forfeiture managed by Assistant United States Attorney Jennifer M. Harrington.

An indictment represents only formal charges against a defendant who remains presumed innocent until proven guilty.