To: Travis_Bickle who wrote (273284 ) 9/4/2010 10:07:21 AM From: Jim McMannis Respond to of 306849 tcpalm.com Officials with Palm Beach company get prison in hiring of illegal aliens Two officials of a Palm Beach County contracting business were sentenced Friday to prison for hiring illegal aliens in order to avoid payment of taxes and worker compensation premiums, federal officials said. John M. David, president of Sun Deck Concrete Inc. was sentenced to 16 months in prison, to be followed by 2 years of supervised release. Juan A. Gonzalez, a supervisor at the business, was sentenced to 10 months in prison, to be followed by 2 years of supervised release. In addition, the defendants were ordered to pay restitution totaling $479, 906.60, which David paid in full prior to today’s sentencing. The sentencing were announced in a news release by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; Daniel W. Auer, special agent in charge, Internal Revenue Service, Criminal Investigation, and John Askins, director, Florida Department of Financial Services, Division of Insurance Fraud. Sun Deck provides concrete services to residential and commercial contractors. According to court documents, in the early 2000s, Sun Deck’s business began to grow and the company needed to hire additional laborers. To meet this need and to remain profitable, Sun Deck turned to undocumented workers, many of whom were Honduran and Mexican nationals who were living in the United States illegally. In order to conceal the fact that Sun Deck was hiring and paying illegal aliens, John David and Juan A. Gonzalez devised a scheme to pay these workers through a series of shell companies. The federal officials said court documents showed the following: The shell companies, which had been set up by co-conspirators, purportedly provided labor services to construction companies like Sun Deck. In truth, the companies provided no legitimate services and were set up for the sole purpose of funneling wages from the construction companies to the illegal workers. To make the shell companies appear legitimate, the co-conspirators opened corporate bank accounts, obtained federal tax identification numbers, and purchased fraudulent workers’ compensation insurance policies for the companies. Between 2005 and 2006, Gonzalez and other Sun Deck supervisors recruited more than 20 illegal aliens to work at Sun Deck work sites. Sun Deck controlled all aspects of the illegal workers’ employment. Specifically, Gonzalez and the other Sun Deck supervisors, in consultation with David, hired and fired the illegal workers, determined their work assignments and schedules, supervised their work at the job site, and set their hourly wages. At the end of each week, Gonzalez and the other Sun Deck supervisors calculated the wages due to each illegal alien and reported these wages to David, who would approve the issuance of checks payable to the shell companies for the amount of the wages, as well as additional monies to cover kickbacks to the co-conspirators and supervisors and fees to the check cashing store. During 2005 and 2006, David caused Sun Deck to pay more than $2 million in cash wages through the shell companies in order to conceal the fact that Sun Deck was employing illegal workers and to avoid the payment of employment taxes and workers’ compensation premiums for these workers. As a result of this scheme, David defrauded the Internal Revenue Service out of $316,254.60 in employment taxes which were due and owing on these wages. In addition, Sun Deck failed to disclose in its monthly audit reports which were sent via the mail to Bridgefield Employers Insurance Company, Sun Deck’s insurance carrier, that it had paid approximately $2 million in wages to the illegal aliens. Consequently, Sun Deck avoided the payment of approximately $163,652 in workers’ compensation premiums due and owing to Bridgefield for these employees.