JACKSONVILLE — Two Orlando residents who ran a nearly nine-year construction payroll scheme that funneled $148,760,824 in off-the-books wages through their company were sentenced by U.S. District Judge Wendy W. Berger, with the ringleader receiving four years and nine months in federal prison.
Rene Mauricio Escobar, 55, a naturalized U.S. citizen from Ecuador, and Juana Nelida Escobar, 36, a legal permanent resident from Mexico, pleaded guilty to conspiracy to commit tax fraud and conspiracy to commit wire fraud. Juana Escobar was sentenced to two years’ imprisonment. The court ordered both defendants to pay $37,174,388 in restitution to the IRS for unpaid payroll taxes. Juana Escobar’s conviction will likely result in her deportation from the United States.
“Complex investigations such as this require the skills and diligence of dedicated investigators and prosecutors,” said U.S. Attorney Gregory W. Kehoe. “Because of the interagency cooperation and expertise displayed in this case, an intricate fraud scheme was unraveled, and the defendants were brought to justice.”
According to court documents, from approximately December 2015 through August 2024, the Escobars used their company, Escobar Plastering, to help hundreds of construction subcontractors pay workers off the books — avoiding payroll taxes and workers’ compensation insurance premiums while facilitating the employment of illegal alien workers not authorized to work in the United States. In exchange for 7% to 8% of the subcontractors’ payroll — totaling at least $10,413,258 at the 7% rate — the defendants issued fraudulent certificates of insurance representing that subcontractors worked for Escobar Plastering and were covered by the company’s workers’ compensation policies. Those policies were based on applications claiming the company employed only a handful of workers with minimal payroll. Had insurers known the true scope, they would have charged annual premiums totaling approximately $14,878,207.
“Payroll and workers’ comp fraud doesn’t just break the law — it puts honest contractors at a competitive disadvantage,” said Ron Loecker, Special Agent in Charge of IRS Criminal Investigation’s Florida Field Office. “Don’t be fooled into thinking these schemes are victimless crimes. The actions by these defendants alone cost the US taxpayers $37 million. Alongside our law-enforcement partners, IRS Special Agents will keep exposing complex schemes that exploit workers and steal from American taxpayers.”
Homeland Security Investigations Jacksonville Assistant Special Agent in Charge Tim Hemker said the scheme damaged far more than the federal treasury. “Multi-million-dollar payroll and worker’s insurance fraud schemes fuel the underground economy, create unfair advantages over honest businesses, and put workers at risk, especially when these schemes exploit illegal alien workers for personal gain,” Hemker said. “HSI is committed to dismantling complex criminal enterprises that exploit our financial and labor systems and exploit workers. By working in close partnership with IRS-CI, we uncovered this fraud, and these criminals will now be held accountable for their actions.”
Juana Escobar pleaded guilty on July 8, 2025, and Rene Escobar pleaded guilty on November 20, 2025. The case was prosecuted by Assistant United States Attorney Arnold B. Corsmeier, with asset forfeiture handled by Assistant United States Attorney Clint Locke. The Florida Department of Financial Services also assisted with the investigation, which federal officials described as part of a continuing probe by HSI and IRS Criminal Investigation into the use of shell companies and “ghost” employees in the construction industry.