New Hampshire man sentenced to 18 months in prison for facilitating employment tax fraud

 

Date: April 14, 2021

Contact: newsroom@ci.irs.gov

CONCORD — Walter Rodriguez of Manchester, was sentenced today to 18 months in prison for employment tax fraud.

According to court documents, from 2011 to 2013, Rodriguez aided and abetted several drywall companies that were evading the payment of employment taxes. Rodriguez found workers for the companies for construction jobs. The companies then issued checks in the names of fictitious or fraudulent identities and provided those checks to Rodriguez. He then converted the checks to cash at local check-cashing businesses and paid the workers off-the-books. In total, Rodriguez enabled the payment of $1.7 million in unreported wages, causing a tax loss of $416,000.

In addition to the term of imprisonment, U.S. District Judge Steven J. McAuliffe ordered Rodriguez to serve 1 year of supervised release and to pay approximately $416,163 in restitution to the United States.

Rodriguez previously pleaded guilty on January 12, 2021.

Acting United States Attorney John J. Farley and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division made the announcement.

"The defendant committed a serious violation of federal law," said Acting U.S. Attorney Farley. "The defendant's elaborate scheme generated a significant number of false documents, allowed individuals to work off-the-books, and resulted in over $400,000 in unpaid taxes. As this case shows, tax cheaters in New Hampshire will face significant consequences for their unlawful conduct."

"Under-the-table schemes like those perpetrated by the defendant are an affront to the hardworking businesses who play by the rules," stated Ramsey E. Covington, Acting Special Agent in Charge of Internal Revenue Service-Criminal Investigation, Boston Field Office. "The terms handed down in today's sentencing will hopefully serve as a clear warning about the penalties that await those involved in this type of criminal activity."

IRS-Criminal Investigation investigated the case. Assistant U.S. Attorney Seth Aframe of the District of New Hampshire and Trial Attorney Brittney Campbell of the Justice Department's Tax Division prosecuted the case.