Date: June 23, 2021 Contact: email@example.com Trenton, NJ — The owner of a Monmouth County, New Jersey, construction and demolition business today admitted evading employment and personal income taxes, Acting U.S. Attorney Rachael A. Honig announced. Peter Alvarez of Atlantic Highlands, New Jersey, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count each of employment tax evasion and personal income tax evasion. According to documents filed in this case and statements made in court: From 2011 to 2016, Alvarez owned and operated Mr. Demo, a construction and demolition business in Leonardo, New Jersey. Alvarez was required to report to the IRS federal withholding taxes and FICA taxes for all of Mr. Demo's employees and to pay those taxes on a quarterly basis. Alvarez cashed numerous checks issued by Mr. Demo's clients and used the resulting cash, in part, to pay Mr. Demo's employees' wages. By using cash to pay Mr. Demo's employees, Alvarez concealed from the IRS his payment of employees' wages and his failure to report, account for, and pay employment taxes of a total of $177,649. Count 1 of the information to which Alvarez pleaded guilty referred to Alvarez's evasion of employment taxes of $23,618 for the first quarter of 2016. From Aug. 1, 2012, to Oct. 23, 2017, Alvarez filed individual federal tax returns for the calendar years 2011 to 2016 in which he falsely and substantially understated Mr. Demo's total gross receipts by not reporting the numerous checks issued by Mr. Demo's clients that he cashed. For those calendar years, Alvarez owed additional income tax of $432,019 on Mr. Demo's unreported gross receipts less allowable payroll expenses. Count 2 of the information to which Alvarez pleaded guilty referred to Alvarez's evasion of personal income tax of $89,190 for calendar year 2013. As part of the plea agreement, Alvarez agreed to make full restitution to the IRS of $609,668. Each charge of tax evasion carries a maximum potential penalty of five years in prison and a maximum $250,000 fine. Sentencing of the defendant is scheduled for Oct. 28, 2021. Acting U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today's guilty plea. The government is represented by Assistant U.S. Attorneys J Fortier Imbert and Sara F. Merin of the Special Prosecutions Division in Newark.