Date: Aug. 6, 2024 Contact: newsroom@ci.irs.gov Newark, NJ — A Middlesex County, New Jersey, man admitted evading taxes through a check cashing scheme, U.S. Attorney Philip R. Sellinger announced today. Alain Rodrigues, of Old Bridge, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court on Aug. 1, 2024, to an information charging him with one count each of tax evasion and failure to collect and pay over taxes. According to documents filed in this case and statements made in court: Rodrigues owned and operated a construction company in Old Bridge and Newark. Beginning around 2017, Rodrigues deposited a portion of the payments from customers into a business bank account and converted the balance to cash and money orders, which he deposited in a personal bank account or used to pay cash wages to employees. Rodrigues only reported the portion of the company’s revenue that was deposited in the business bank account on his business’s taxes. Rodrigues did not report the business revenue deposited directly into his personal bank account as income on his personal income taxes. The company, under Rodrigues’s direction, did not report to the IRS the cash wages it paid to employees and did not collect or pay over employment taxes on these wages. In total, Rodrigues and his company paid $554,873 less than they owed in income taxes and failed to collect and pay over $793,139 in employment taxes, for a total of approximately $1.35 million. Each count of tax evasion and failure to collect and pay over taxes carries a maximum penalty of five years in prison and a $250,000 fine. As part of his plea agreement, Rodrigues has agreed to pay the government restitution of $1.35 million and to file amended tax returns. Sentencing is scheduled for Dec. 19, 2024. U.S. Attorney Sellinger credited special agents of IRS Criminal Investigation (CI), under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the guilty plea. The government is represented by Assistant U.S. Attorney Aaron L. Webman of the Economic Crimes Unit in Newark. CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
