A Ukrainian national has pleaded guilty to charges of conspiracy to defraud the United States and conspiracy to commit money laundering, according to an announcement by the Department of Justice. The scheme, which spanned over a decade, caused a tax loss of more than $9.5 million to the U.S. government.

Fraudulent Labor-Staffing Operations in Florida

Court documents and statements made in court revealed that Oleg Oliynyk, along with others, owned and operated several labor-staffing companies in South Florida. These companies included Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC, and Tropical City Group LLC. Between August 2007 and August 2021, these businesses facilitated the employment of non-resident aliens in the hospitality industry who were not authorized to work in the United States.

Oliynyk and his co-defendants also conspired to evade federal income and employment tax assessments. The scheme enabled them to launder more than $11 million in proceeds through various financial channels.

The fraudulent operations resulted in a tax loss of over $9.5 million. By circumventing tax obligations, the conspirators undermined the federal tax system while profiting from their illegal activities.

Oliynyk faces severe legal consequences for his actions. He could receive a maximum penalty of:

20 years in prison for conspiracy to commit money laundering.
Five years in prison for conspiracy to defraud the United States.

The sentencing date has not yet been scheduled. A federal district court judge will determine Oliynyk’s sentence after reviewing the U.S. Sentencing Guidelines and other relevant factors.

The case is being handled by Homeland Security Investigations and IRS Criminal Investigation. The prosecution team includes Senior Litigation Counsel Sean Beaty, Trial Attorneys Matthew B. Hicks and Wilson R. Stamm of the DOJ’s Tax Division, and Assistant U.S. Attorney Christopher Clark from the Southern District of Florida.

The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida.

This article, “Florida Labor-Staffing Company Owner Pleads Guilty to $9.5 Million Tax Fraud and Money Laundering” was first published on Small Business Trends