Jacksonville, Florida – United States Attorney Roger B. Handberg has announced the return of two indictments against five Orlando residents: Eduardo Anibal Escobar (44), Carlos Alberto Rodriguez (45), Adelmy Tejada (56), Rene Mauricio Escobar (53), and Juana Nelida Escobar (45). They are charged with conspiracy to commit wire fraud and conspiracy to commit tax fraud. Each wire fraud charge carries a maximum penalty of 20 years in federal prison, while each tax fraud charge carries a maximum penalty of 5 years.

The indictments also indicate that the United States intends to seek the forfeiture of at least $19 million, along with five residential properties in Orlando, believed to be proceeds of the alleged wire fraud activities.

According to the indictment, the defendants formed companies that claimed to provide labor for construction contractors. Florida law mandates that any business engaged in construction must secure and maintain workers’ compensation insurance. The defendants applied for policies that covered only a few employees and a minimal payroll. They entered agreements with construction crews, often composed of undocumented workers, and submitted misleading paperwork to contractors, falsely claiming that these workers were employees of their companies. The workers performed construction tasks under the supervision of the contractors.

Contractors issued payroll checks to the defendants’ companies for this work, which were then given to crew leaders. The checks were deposited into the defendants' company bank accounts, from which they withdrew cash or wrote checks for the workers’ pay. Before handing over the payroll, the defendants deducted a 6% to 8% service fee. This arrangement allowed both the contractors and the workers to avoid responsibilities regarding payroll taxes, workers’ compensation insurance, and the workers' legal employment status.

During the alleged conspiracy, the defendants deposited over 46,000 payroll checks amounting to more than $292 million, keeping at least $19 million as fees. No parties involved—contractors, crew members, or the defendants—remitted payroll taxes to the IRS, leading to an estimated $52 million in unpaid taxes.

Additionally, the defendants defrauded workers’ compensation insurance companies of premiums. Had the insurance companies been aware that the policies were being used for over $292 million in payroll, they would have charged additional premiums totaling at least $28 million.

An indictment serves as a formal charge and does not imply guilt; all defendants are presumed innocent until proven guilty.

The investigation was conducted by Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation, and the Florida Department of Financial Services. This case is part of an ongoing investigation into the use of shell companies and “ghost” employees in the construction industry and will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier, with asset forfeiture managed by Assistant United States Attorney Jennifer M. Harrington.