SARASOTA, Fla. (WWSB) – Two Orlando residents have been sentenced in a federal construction payroll fraud case that prosecutors said cost the IRS more than $37 million in unpaid payroll taxes.
Rene Mauricio Escobar, 55, was sentenced to four years and nine months in prison, according to the U.S. Attorney’s Office for the Middle District of Florida. Juana Nelida Escobar, 36, was sentenced to two years in prison.
The court ordered the defendants to pay $37,174,388 in restitution to the IRS.
Prosecutors said the couple conspired to commit tax fraud and wire fraud through their company, Escobar Plastering. The scheme ran from about December 2015 through August 2024, according to court documents and information presented in court.
Authorities said the defendants helped construction subcontractors pay workers off the books to avoid payroll taxes and workers’ compensation insurance premiums. Court records said the scheme facilitated the employment of workers who were not legally authorized to work in the United States.
Escobar Plastering entered into agreements with hundreds of subcontractors, according to prosecutors. In exchange for 7% to 8% of payroll, the company sent certificates of insurance to contractors, representing that the subcontractors worked for Escobar Plastering and were covered by its workers’ compensation insurance.
Prosecutors said the company’s insurance policies were based on applications that claimed only a small number of employees and minimal payroll.
Insurers allegedly covered hundreds of workers without knowing the true size of the payroll exposure. If insurers had known the actual amount of payroll involved, they would have charged about $14.9 million in annual premiums, according to the U.S. Attorney’s Office.
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Prosecutors said thousands of payroll checks totaling about $148.8 million were deposited into Escobar Plastering bank accounts. The defendants allegedly withdrew cash to pay workers after subtracting their fee, all without withholding or paying payroll taxes to the IRS.
Federal authorities said the scheme caused the U.S. Treasury to lose $37,174,388 in unpaid payroll taxes.
“Complex investigations such as this require the skills and diligence of dedicated investigators and prosecutors,” U.S. Attorney Gregory W. Kehoe said in a statement.
Ron Loecker, special agent in charge of IRS Criminal Investigation’s Florida Field Office, said the fraud hurt taxpayers and honest contractors.
“Don’t be fooled into thinking these schemes are victimless crimes,” Loecker said in a statement.
The case was investigated by Homeland Security Investigations and IRS Criminal Investigation, working as part of the Homeland Security Task Force. The Florida Department of Financial Services also assisted, according to the U.S. Attorney’s Office.
Juana Escobar pleaded guilty July 8, 2025. Rene Escobar pleaded guilty Nov. 20, 2025.
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