Mario Lisandro Flores Moradel, a Honduran national, pleaded guilty on Mar. 19 to conspiring with others in an off-the-books payroll scheme that resulted in more than $38 million in losses to the U.S. government.
The case highlights efforts by authorities to combat illegal employment practices and tax evasion schemes that affect both government revenue and worker protections.
According to court documents and statements made in court, Flores operated an illegal cash payroll system for construction workers from 2015 to 2022. The operation used shell companies to run unlicensed check cashing and courier services, allowing contractors and subcontractors to pay workers off the books while avoiding required employment taxes. This system also enabled the employment of individuals not authorized to work in the United States. The businesses cashed approximately $89 million in checks from subcontractors, charging a fee based on each check’s value. Flores admitted his actions caused a tax loss of more than $9.4 million.
Flores pleaded guilty to one count of conspiracy to defraud the United States and one count of conspiracy related to operating unlicensed money transmitting businesses. He is scheduled for sentencing on June 24 and faces up to five years in prison for each count. Sentencing will be determined by a federal district court judge after considering applicable guidelines.
Several co-conspirators have previously pleaded guilty: Michael Mayorga and Francisco Alvarez on May 22, 2025; Iris Villafranca and Osman Zapata on Oct. 9, 2025.
U.S. Attorney Gregory W. Kehoe for the Middle District of Florida and Assistant Attorney General A. Tysen Duva announced the plea agreement. The investigation was led by IRS Criminal Investigation with assistance from Homeland Security Investigations as well as several other federal and state agencies involved in arrest operations.
Prosecution is being handled by Assistant U.S. Attorney Diane Hu of the Middle District of Florida along with Senior Litigation Counsel Sean Beaty and Trial Attorney Kavitha Bondada from the Justice Department’s Tax Division.
