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NJ Construction Business Owner Who Owes $1.3M+ In Taxes Admits To Evasion Scheme: Feds

A New Jersey construction company owner admitted to using his personal bank account to evade more than $1.3 million in taxes, authorities said.

Gavel.

Gavel.

Photo Credit: Pixabay/sergeitokmakov-3426571

Alain Rodrigues, 49, of Old Bridge, pleaded guilty on Thursday, Aug. 1 to tax evasion and failure to collect and pay over taxes, New Jersey's U.S. Attorney Philip Sellinger said in a news release on Tuesday, Aug. 6. Rodrigues owned and operated a construction company in Old Bridge and Newark.

According to court documents and statements, Rodrigues deposited some customers' payments into a business bank account and converted the balance into cash or money orders. He then made deposits into a personal bank account or used cash to pay employees.

Rodrigues only reported the company’s revenue that was deposited in the business account on his business’s taxes. He didn't report the money deposited into his own account as income for his personal income taxes.

The company also didn't report the cash wages to the IRS and didn't collect or pay over employment taxes on the employees' wages. Rodrigues and the company underpaid the government about $1.35 million, including $793,139 in employment taxes and $554,873 in income taxes.

Each of Rodrigues' charges carries up to five years in prison and a $250,000 fine. In his plea deal, Rodrigues also agreed to pay the $1.35 million in restitution and he'll file amended tax returns. 

Rodrigues was scheduled for sentencing on Thursday, Dec. 19.

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