Temp Agency Owner Pleads Guilty to Personal & Corporate Tax Evasion

PROVIDENCE, R.I. – Rossy Noriega, 50, of Providence, R.I., owner of New Diamond Work, Inc., a temporary employment agency based in Fall River, Mass., pleaded guilty in federal court in Providence today to charges that she failed to pay $720,923 in employment and personal income taxes due the IRS. Noriega admitted that she failed to pay employment taxes for those employees who she paid in cash, and that she failed to pay personal taxes on unreported cash from her business that she pocketed.

Noriega admitted to the court that during tax years 2009-2013, she made over $2.5 million dollars in cash withdrawals from her company bank accounts. Some of the proceeds of these withdrawals were used to pay employees in cash; while some of the proceeds were used for her own personal benefit.

Noriega’s guilty plea to charges of income tax evasion and failure to withhold and pay over employment taxes is announced by United States Attorney Peter F. Neronha and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation. 

Appearing before U.S. District Court Judge John J. McConnell, Jr., Noriega admitted to the court that during tax years 2009-2013, as she made over $2.5 million dollars in cash withdrawals from company accounts, she paid some of her New Diamond Work employees via payroll check while many more were paid in cash, and that she used a significant amount of the cash withdrawn for her own personal use.

Noriega admitted that she failed to accurately report to the IRS the number of employees, total payments to the employees, and the employees’ and the employers’ share of federal employment taxes due the IRS. She also admitted that she failed to accurately report her own personal income, thus she failed to pay the appropriate amount of taxes due the IRS. An investigation by IRS Criminal Investigation revealed that the defendant failed to pay to the IRS $580,066 in payroll taxes on behalf of New Diamond Work, Inc., for the quarters ending March 31, 2009 through and December 31, 2013; and that during tax years 2009-2013, she failed to pay personal income taxes totaling $140,857.

Noriega is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 24, 2016.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

The matter was investigated by IRS Criminal Investigation, with the assistance of the U.S. State Department Office of Inspector General.

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