Federal authorities have arrested the owner of an Orange County staffing company and three other individuals on charges related to a $90 million tax fraud scheme. The indictment alleges that Lorena Padilla, 49, of Villa Park, led a conspiracy to defraud the IRS and several clients by failing to pay employment taxes withheld from temporary workers’ wages. Many of these workers were undocumented immigrants.
Padilla faces one count each of wire fraud conspiracy and money laundering conspiracy, as well as six counts of failing to account for and pay over employment taxes. She is scheduled for her initial court appearance in Santa Ana.
Others arrested include Selina Medina Preciado, 30, of Whittier (Padilla’s daughter); Carlos Padilla, 40, of Chino (her brother); and Pablo Araque, 55, of Downey. Two additional defendants—Melanie Medina, 31 (also Padilla’s daughter), and Susana Cardenas, 45—are expected in court soon. Authorities are searching for Janine J. Garcia, also known as Janette Ortega.
The indictment states that between January 2012 and September 2024, the group operated several staffing companies across Los Angeles and Riverside counties: Platinum Staffing in Montebello; Payroll Staffing Solutions Inc. in Industry; Three Star Global Inc. in Corona; and Next Level Staffing in Maywood. These businesses promised clients they would handle payroll tracking, paycheck distribution, withholding and payment of payroll taxes to federal and state agencies, filing quarterly federal employment tax returns, and maintaining valid workers’ compensation insurance.
However, prosecutors allege that the defendants failed to pay all required federal and state employment taxes while misrepresenting their compliance to customers. From January 2018 through 2023, only a small portion of payroll was covered by workers’ compensation insurance.
To hide their actions from authorities such as the IRS and California’s Employment Development Department (EDD), the group allegedly hired large numbers of undocumented immigrants who were less likely to report discrepancies or file tax returns.
Between 2020 and 2025 alone, investigators say the defendants understated federal employment taxes by more than $44 million. Total losses from the scheme reportedly exceed $90 million.
According to officials: “Lorena Padilla and several other defendants used the ill-gotten gains for personal expenses and purchases,” including luxury homes in Riverside ($3 million), Whittier ($2.5 million), Yorba Linda ($3.5 million), rental properties in Ontario and Corona; expensive vacations; musical acts at private parties; as well as high-end vehicles like Lamborghinis and Rolls-Royces.
The indictment is not evidence of guilt; all defendants are presumed innocent until proven otherwise in court.
If convicted on all counts, those charged could face up to 20 years in prison for wire fraud conspiracy charges; up to ten years for money laundering conspiracy; plus up to five years per count for failure to pay employment taxes.
IRS Criminal Investigation is leading the probe into this case.
Assistant United States Attorneys James C. Hughes (Major Frauds Section) and Alexander Su (Asset Forfeiture & Recovery Section), along with Trial Attorney Dominick Giovanniello from the Tax Division are prosecuting.
