Jose Garcia, a construction manager from New York, has been sentenced to 27 months in prison for his involvement in a $4.5 million embezzlement scheme and a $2.1 million tax evasion crime. The announcement was made by Jay Clayton, the United States Attorney for the Southern District of New York.
Garcia was implicated in an embezzlement scheme that ran from 2010 to 2019, orchestrated by Mark Angarola, who held a senior position at an IT services company. The fraud involved submitting false invoices and expenses to enrich themselves and others involved. "Jose Garcia engaged in a lengthy embezzlement scheme that involved a no-show job, fraudulent billings, and largescale cash kickbacks," said U.S. Attorney Jay Clayton.
In addition to embezzling funds through fake management fees paid to shell entities he controlled, Garcia also committed tax evasion from 2011 through 2019. He failed to file tax returns or pay taxes on his income during this period. "Garcia then doubled-down and sought to conceal his embezzlement activities by committing another crime – tax evasion," added Clayton.
The court ordered Garcia to forfeit $4,554,950 and pay restitution of $7,007,055. He will also serve three years of supervised release following his prison term.
The case was investigated by the Federal Bureau of Investigation's New York Field Office; IRS-Criminal Investigation's New York Field Office; and the U.S. Department of Labor’s Office of Inspector General's Northeast Regional Office.
Assistant U.S. Attorneys Michael D. Neff and Timothy V. Capozzi along with Special Assistant U.S. Attorney Jorge Almonte led the prosecution under the Complex Frauds and Cybercrime Unit alongside the Justice Department’s Tax Division.
