CORPORATE PRESIDENT AND WIFE PLEAD GUILTY TO TAX FRAUD

Marcos Daniel Jiménez United States Attorney for the Southern District of Florida, and Brian J. Wimpling, Special Agent in Charge of the Miami Field Office, Internal Revenue Service, Criminal Investigation, announced today that on June 25, 2003, Andres Roberto Diaz and Licet Del Carmen Diaz, husband and wife, pled guilty before United States District Judge Joan A. Lenard, in Miami, Florida, to conspiring to defraud the Internal Revenue Service and to charges relating to income tax evasion and employment tax evasion.

Both defendants pled guilty to conspiring to defraud the Internal Revenue Service, in violation of Title 18, United State Code, Section 371, attempting to evade income taxes, in violation of Title 26, United States Code, Section 7201, and willful failure to collect or pay over tax, in violation of Title 26, United States Code, Section 7202. Each of these offenses is punishable by a term of imprisonment of up to five years and a fine.

Sentencing is scheduled for September 8, 2003, at 2:30 p.m. before Judge Lenard.

According to the indictment, the defendants owned and controlled ARR Corporation and R & R Block Mason, Inc., two corporations engaged in the masonry business operating in Miami-Dade County. The indictment alleges that the defendants conspired to enrich themselves by failing to report and pay their personal income taxes and by failing to report and pay federal income and Federal Insurance Contributions Act (FICA) taxes from the total taxable wages of the employees of their two corporations.

The indictment further alleges that from at least January 1, 1997, to March 31, 1998, the defendants deducted and collected approximately $70,000 from the taxable wages of the employees of their two corporations, but failed to forward those monies to the Internal Revenue Service. Furthermore, the defendants failed to file individual income tax returns for the years 1995 and 1996, and attempted to evade individual income taxes in the approximate amount of $47,974. The plea agreements signed by the Diaz’ note that they were responsible for evading more than $164,000 in taxes.

Mr. Jiménez commended the investigative efforts of the Internal Revenue Service, Criminal Investigation. The case is being prosecuted by Assistant United States Attorney David M. Buckner.