Florida businessman sentenced in $3.5m tax fraud case

Wendel Algarin was found guilty of aiding subcontractors in the evasion of payroll taxes and worker compensation insurance premiums.

The Florida resident operated three shell companies that allowed subcontractors to pay their workers “off the books”. He received almost $2m for his role in the scheme, which ran between 2012 and 2019. He used the money to fund a lavish lifestyle, including the purchase of luxury cars.

Tara Reed, an Internal Revenue Service (IRS) acting special agent, said: “Today’s sentencing demonstrates that the IRS is dedicated to investigating and building a just and impartial tax system in which all businesses can operate.”

Algarin pleaded guilty to the crimes on the 15 August.