By: Richard L. Smith
Alain Rodrigues, a 49-year-old resident of Old Bridge admitted in federal court to evading taxes through a check cashing scheme, U.S. Attorney Philip R. Sellinger announced today.
Rodrigues pleaded guilty before U.S. District Judge Esther Salas in Newark federal court on August 1, 2024, to charges of tax evasion and failure to collect and pay over taxes.
According to court documents and statements, Rodrigues owned and operated a construction company in Old Bridge and Newark.
Starting around 2017, Rodrigues deposited part of the payments from customers into a business bank account, while converting the remaining payments to cash and money orders, which he either deposited into a personal bank account or used to pay employees in cash.
Rodrigues reported only the revenue deposited in the business bank account on his company’s taxes, omitting the funds deposited into his personal account from his personal income taxes.
Under Rodrigues's direction, the company failed to report the cash wages paid to employees to the IRS and did not collect or pay the necessary employment taxes on these wages.
This scheme resulted in an underpayment of $554,873 in income taxes and a failure to collect and pay $793,139 in employment taxes, totaling approximately $1.35 million.
Each count of tax evasion and failure to collect and pay over taxes carries a maximum penalty of five years in prison and a $250,000 fine.
As part of his plea agreement, Rodrigues has agreed to pay $1.35 million in restitution to the government and to file amended tax returns. Sentencing is scheduled for December 19, 2024.
