Mario Lisandro Flores Moradel, a Honduran national living in Orlando, 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 is significant due to the scale of the financial loss and its impact on tax collection and labor law enforcement. Authorities said the illegal operation allowed construction contractors and subcontractors to pay workers cash without paying required employment taxes or verifying their legal authorization to work.
According to court documents, Flores and his co-conspirators operated an unlicensed check cashing and cash courier business from 2015 through 2022. They used shell companies to process about $89 million in checks from construction subcontractors, charging fees for these services. The group filed false tax documents with the Internal Revenue Service (IRS) as part of efforts to conceal their activities. Flores admitted responsibility for causing more than $9.4 million of the total tax loss.
Flores pleaded guilty to one count each of conspiracy to defraud the United States and conspiracy to operate unlicensed money transmitting businesses. He faces up to five years in prison per count when sentenced on June 24 by a federal district court judge who will consider sentencing guidelines and statutory factors.
Several co-conspirators have already pleaded guilty for their roles: 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 IRS Criminal Investigation division led the investigation with help from Homeland Security Investigations, ICE ERO Miami (Orlando sub-office), Florida Highway Patrol, U.S. Customs and Border Protection, U.S. Marshals Service, State Department, and Florida Department of Law Enforcement.
