partner of Key West labor recruitment companies convicted of tax, immigration and money laundering offenses | Takeover bid


A partner of several Key West labor recruitment companies was today sentenced to more than 24 years in prison for tax, immigration and money laundering offenses related to the exploitation of these businesses.

According to court documents and evidence presented at trial, Mykhaylo Chugay and others owned and operated a series of labor recruitment businesses in South Florida, including General Labor Solutions LLC, Liberty Specialty Service LLC , Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City. Services LLC and Tropical City Group LLC, between August 2007 and July 2021. Through these recruitment companies, Chugay facilitated the employment of people in hotels, bars and restaurants in Key West and elsewhere, although employees were not allowed to work. in the USA.

Chugay and his co-conspirators also defrauded the IRS of more than $25 million in income and Social Security and Medicare taxes that should have been collected and paid in connection with the employment of these workers. Chugay conspired with others to encourage certain workers to enter the United States and stay in the country, in violation of immigration laws. Chugay and others sent checks and wire transfers totaling more than $11 million in proceeds from the illegal scheme to conspirators in Ukraine and elsewhere.

In addition to the jail sentence, U.S. District Court Judge Jose E. Martinez for the Southern District of Florida ordered Chugay to serve three years of supervised release. Judge Martinez will issue a judgment forfeiture of the money and order Chugay to pay at a later date.

“Chugay’s illegal staffing and money laundering operation spanned more than a decade and cost the government millions of dollars in unpaid payroll taxes,” said Acting Assistant Deputy Attorney General Stuart M. Goldberg of the Taxation Division of the Department of Justice. “Employers who play by the rules and pay their fair share of taxes deserve to compete on a level playing field. Those who take shortcuts and evade their legal obligations should know that they will be investigated and prosecuted. »

“The elaborate program organized by this organization has taken advantage of US government programs designed to assist vulnerable populations seeking assistance and a better life here in the United States for their own personal gain,” the officer said. Special Charge Anthony Salisbury of Homeland Security Investigations (HSI). Miami. “This conviction is the culmination of a lengthy investigation that demonstrates the resolve and determination of HSI and its partners to prevent individuals from trying to take advantage of systemic vulnerabilities to fuel their lavish lifestyles.”

“We are committed to finding criminals who break the law to gain an unfair business advantage and enrich themselves by avoiding paying taxes,” said Special Agent in Charge Matthew D. Line of the IRS Field Office- Criminal Investigation in Miami. “This is another example of how our local agents and staff have applied their skilled forensic financial analysis and criminal investigation expertise to investigate rogue recruitment companies engaged in employment practices. illegal.”

Acting Assistant Deputy Attorney General Goldberg and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.

Homeland Security Investigations and the U.S. Department of Homeland Security IRS Criminal Investigation are investigating the case. U.S. Citizenship and Immigration Services and U.S. Customs and Border Protection Air and Marine Operations provided substantial assistance in the trial.

Lead litigation attorney Sean Beaty, attorneys Jessica A. Kraft and Nicholas J. Schilling Jr., and tax division paralegal Robert Resto, and Assistant U.S. Attorney Chris Clark for the Southern District of Florida, are suing the ‘affair.


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