Naples construction firm leader behind $4.2M payroll scam sent to prison

A Naples construction company manager has been sentenced to more than 30 months in federal prison for defrauding the IRS

Alexis Garcia, whose age and place of residence were not disclosed, has also been ordered to pay $4.26 million in restitution. He pleaded guilty Aug. 18 to one count of defrauding the agency.

According to the U.S. Department of Justice, here is what happened:

Garcia managed and directed Tape Drywall Services Inc. in Naples between 2017 and 2019.

During that time, general contractors would enter into agreements with Tape Drywall to provide workers for various projects and provided checks in the name of Tape Drywall for payment.

Garcia and the co-conspirator then cashed the checks at a check cashing business and paid a fee out of every check cashed. Garcia and his co-conspirator provided cash to the foremen who used the cash to pay the workers. In total, Garcia and his co-conspirator cashed more than 3,600 checks, authorities contended. 

Garcia and the president of the company, according to the plea agreement in court records, cashed more than $28.76 million in checks, keeping $870,000 for themselves. The rest of the cash went to foremen who would pay the workers.

As part of the scheme, Garcia and the co-conspirator did not deduct and withhold income taxes nor did they deduct and withhold Federal Insurance Contributions Act taxes — Social Security and Medicare taxes — paid by the employer and the employee.

They also avoided paying higher premiums for workers’ compensation insurance.

The case was investigated by IRS — Criminal Investigation, with assistance from Homeland Security. It was prosecuted by Assistant United States Attorney Yolande G. Viacava and Senior Litigation Counsel Michael C. Boteler of the United States Department of Justice, Tax Division.

U.S. District Judge Kyle C. Dudek sentenced Garcia.