May 8, 2025 | MedLegalNews.com – Four Indicted in Florida: A federal grand jury in Orlando has indicted four Honduran nationals for operating a sprawling cash-based payroll scheme designed to evade payroll taxes and defraud workers’ compensation insurers, while facilitating the illegal employment of undocumented construction workers.
7-Year Scheme Involved $89 Million in Cashed Checks
Four Indicted in Florida : According to the indictment, Iris Villafranca, Mario Flores, Osman Zapata, and Cristofer Oseguera Giron allegedly ran an unlicensed check-cashing and cash courier operation from 2015 to 2022. By using a network of shell companies, the defendants cashed approximately $89 million in checks from construction subcontractors, who then used the funds to pay workers off the books.
In return, the defendants charged a percentage fee for each cashed check—allowing contractors to skirt payroll tax obligations and avoid verifying workers’ legal employment status.
Workers’ Comp and IRS Fraud Alleged
The indictment states that the scheme extended beyond tax evasion. The defendants allegedly:
- Filed false employment tax documents and made minimal deposits with the IRS
- Leased workers’ compensation insurance certificates to contractors who weren’t truly covered
- Submitted fraudulent information to insurers, misrepresenting payroll amounts and workforce size
Villafranca faces additional charges for conspiracy to commit wire fraud and filing false tax returns from 2019 to 2022. The indictment claims she failed to report earnings from the scheme and rental income from real estate holdings.
Possible Prison Time
If convicted, Villafranca faces:
- Up to 20 years for conspiracy to commit wire fraud
- Up to 5 years each for conspiracy to operate an unlicensed money transmitting business and conspiracy to commit tax fraud
- Up to 3 years per count for filing false tax returns
Flores, Zapata, and Giron each face a maximum of 10 years—five years per conspiracy count.
A federal judge will determine sentences in accordance with the U.S. Sentencing Guidelines and statutory factors.
Joint Agency Investigation
The case is being prosecuted by the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Middle District of Florida, with investigation led by IRS Criminal Investigation and assistance from Homeland Security Investigations.
“These types of schemes undermine the integrity of both our tax and workers’ compensation systems,” said Acting Deputy Assistant Attorney General Karen E. Kelly.
All defendants are presumed innocent unless and until proven guilty in a court of law.
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