Orlando residents sentenced in $146 million payroll fraud scheme

July 30, 2025

ORLANDO, Fla.

Three Orlando residents were sentenced for a $146 million construction payroll scheme that defrauded the Internal Revenue Service and workers' compensation insurers.

Senior U.S. District Judge Timothy J. Corrigan sentenced Eduardo Anibal Escobar, 45, Carlos Alberto Rodriguez, 36, and Adelmy Tejada, 57, for conspiracy to commit wire fraud and conspiracy to commit tax fraud.

Escobar was sentenced to 4 years and 9 months in prison, Rodriguez was sentenced to 3 years and 4 months in prison, and Tejada was sentenced to 18 months in prison plus 6 months of home detention. Each pleaded guilty on April 3.

According to a release from the U.S. Attorney for the Middle District of Florida, the court ordered the defendants to pay $36,957,616 in restitution to the IRS for unpaid payroll taxes and a total of $397,895 in restitution to two insurance companies for workers' compensation claims they paid out.

Court documents explain that from about January 2015 to about August 2024, the defendants conspired to facilitate the payment of construction workers "off the books" to avoid paying payroll taxes and workers' compensation insurance premiums.

The scheme also facilitated the employment of undocumented workers who were not legally authorized to work in the United States, the release said.

Court documents explain that the defendants, through their companies, T. Escobar Construction and C. Escobar Construction, entered into agreements with hundreds of construction subcontractors to enable the subcontractors to obtain contracts with, and perform work for, construction contractors.

In exchange for six to eight percent of the subcontractor's payroll, the defendants caused certificates of insurance in the name of the defendants' companies to be sent to construction contractors from which the subcontractors wished to obtain work, representing that the subcontractors worked for their companies and were covered by the companies' workers' compensation insurance, per the release.

The company's insurance policies were based on applications representing that the policies would cover a handful of employees and a minimal payroll.

As a result of the defendants using their certificate of insurance to represent that the subcontractors worked for their companies, the insurers unwittingly covered hundreds of workers.

A total of $146,077,535 in payroll checks were deposited into the bank accounts of the defendants' companies, from which they withdrew cash to pay the subcontractors' workers, after subtracting their 6 to 8 percent fee—all without withholding, or paying over, payroll taxes to the IRS.

As a result, the U.S. Treasury lost $36,957,616 in unpaid payroll taxes.

The defendants' scheme allowed the construction contractors and subcontractors to disclaim responsibility for paying payroll taxes to the IRS, for ensuring that adequate workers' compensation insurance was obtained, and for verifying that the workers were legally authorized to work in the United States.

"This case highlights how federal and state agencies are working together to successfully investigate and assist in the prosecution of individuals who engage in illegal financial schemes to enrich themselves," said Special Agent in Charge Ron Loecker, IRS-Criminal Investigation Tampa Field Office.

"IRS Criminal Investigation, Homeland Security Investigations, and the Florida Department of Financial Services collaborated our resources to bring down a criminal enterprise that facilitated unfair competition by defrauding workers' compensation insurers and evading their obligation to pay federal taxes."

"These criminals defrauded the government by dodging payroll taxes and exploited vulnerable workers by not carrying proper insurance," said Homeland Security Investigations Jacksonville Assistant Special Agent in Charge Tim Hemker.

"Unscrupulous and illegal tactics in the construction industry damage the integrity of law-abiding contractors, and that price is eventually passed on to the consumer. These sentences are a testament to the persevering investigative work of HSI special agents and our partners with IRS Criminal Investigation and the Florida Department of Financial Services."

This case was investigated by the Internal Revenue Service – Criminal Investigation, Homeland Security Investigations, and the Florida Department of Financial Services.

It is part of a continuing investigation by these agencies of the use of shell companies and "ghost" employees in the construction industry.

It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.

The asset forfeiture is being handled by Assistant United States Attorney Jennifer M. Harrington.