Orlando Man Pleads Guilty to His Role in Years-Long Off-the-Books Payroll Scheme

# Orlando Man Pleads Guilty in $38 Million Payroll Scheme

Mario Lisandro Flores Moradel, a Honduran national, pleaded guilty to conspiracy to defraud the United States and conspiracy to operate an unlicensed money transmitting business. From 2015 to 2022, Flores operated an illegal off-the-books payroll system for construction workers that caused more than $38 million in losses to the federal government.

Through shell companies, Flores and co-conspirators ran an unlicensed check cashing service that processed approximately $89 million in checks from construction subcontractors. The scheme allowed contractors to pay workers in cash, circumventing required employment taxes to the IRS and workers' compensation insurance obligations. Flores admitted to causing a tax loss exceeding $9.4 million and facilitated employment of workers not legally authorized to work in the United States.

Flores faces up to five years in prison on each conspiracy count. His sentencing is scheduled for June 24, 2026. Four co-conspirators—Michael Mayorga, Francisco Alvarez, Iris Villafranca, and Osman Zapata—previously pleaded guilty for their roles in the scheme. The case was investigated by IRS Criminal Investigation with assistance from Homeland Security Investigations and multiple federal and state agencies.