Woonsocket man defrauds millions of dollars from IRS
PROVIDENCE, R.I. (WLNE) — A Woonsocket businessman was sentenced on Thursday for defrauding millions of dollars from the IRS.
United States Attorney Zachary Cunha said 44-year-old Jesus Jose Mendez was sentenced to three years probation. The first 52 weekends will be served in a detention facility.
Mendez was also ordered to pay back more than $2,000,000 to the Internal Revenue Service and the Massachusetts Department of Labor.
Mendez was a co-owner of a subcontracting business in Rhode Island.
The 44-year-old and his business partner, 37-year-old Jamie Zambrano, paid most of their employees, majority undocumented, under the table, said Cunha. By doing that, the two were “skirting tax laws and unemployment programs.”
Cunha said his Zambrano is accused of using check cashing businesses to cash more than 600 business receipts check totaling more than $16 million. This alleged process spanned from 2013 to 2017, according to court documents.
The 37-year-old is being charged with conspiracy to defraud the IRS, 17 counts of failure to collect or pay tax, and tax evasion. He’s also facing eight counts of structuring financial transactions to evade reporting requirements.
