A Florida woman has pleaded guilty to conspiracy to defraud the US and the Internal Revenue Service (IRS). She has been sentenced to a year and a day in prison and ordered to pay $8.9m in restitution.
A press release from the US department of justice said Gabriela Inamagua owned and managed two shell construction companies that supplied construction services and labour.
In order to comply with Florida law, Inamagua’s companies were required to pay worker’s compensation insurance coverage. However, her companies frequently supplied undocumented workers without insurance, and failed to pay state and federal taxes and insurance companies’ premiums.
Inamagua was ordered by judge Virginia Hernandez Covington to pay restitution to two insurance companies and the IRS.
Tara Reed, IRS criminal investigation special agent, said: “The construction industry as a whole suffers when fraudsters exploit the system by creating fictitious shell companies to illegally pay workers off the books in order to scam insurance companies and avoid employment taxes.
“Today’s sentencing is a reminder that all businesses and employees are responsible for their fair share of taxes.”