A Naples construction manager has pleaded guilty to a payroll fraud scheme that federal prosecutors say cheated the U.S. government out of more than $4 million in tax revenue, according to WGCU.

Alexis Garcia entered his guilty plea before U.S. Magistrate Judge Kyle C. Dudek in the Middle District of Florida. His plea still requires formal acceptance by a district court judge. Garcia is awaiting sentencing and faces up to five years in prison, as well as restitution, fines, and supervised release. The final sentence will be determined by a federal judge after reviewing sentencing guidelines and other statutory factors.

According to court records, Garcia managed Tape Drywall Services Inc. in Naples from 2017 to 2019 and conspired with others to operate an illegal cash payroll system. The scheme allowed the company to avoid paying employment taxes and mislead workers’ compensation insurers.

Prosecutors said contractors wrote checks to Tape Drywall for construction labor. Garcia and a co-conspirator then cashed more than 3,600 checks—worth about $28 million—keeping a percentage for themselves before distributing cash to foremen, who in turn paid workers.

The wages were never reported to the IRS, and no Social Security, Medicare, or federal income taxes were withheld. Prosecutors estimate the scheme caused a tax loss exceeding $4.2 million.

Garcia and his co-conspirator also misrepresented Tape Drywall’s payroll to reduce workers’ compensation insurance costs, defrauding insurers in the process.

Federal officials stressed that timely payment of employment taxes is essential, noting that these funds support Social Security, Medicare, and make up a significant share of federal tax collections each year.