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Florida contractors face fraud claims

On Behalf of | Sep 25, 2013 | Business Torts |

Two former contractors for a prominent local contracting business are in considerable legal trouble after being accused of lying on their taxes. The fraud claims have been filed by the U.S. Attorney Office in Florida after major discrepancies were found between their recorded income and their spending habits. They are facing possible jail time if convicted.

According to the statement released by the Attorney Office, the two contractors — a husband and wife team — currently reside in Claremont. However, their work with Superior Contracting in Coral Springs is the focus of the fraud case being brought against them. Superior Contracting says it paid out millions to the two for work done on repairs to homes damaged by hurricanes and windstorms. However, the couple reported negative income on their tax returns.

The couple have reportedly spent at least $1.5 million last fiscal year on a variety of purchases for their home, vehicles and leisure spending. It has also been reported that one of the two contractors operates under several aliases, further increasing suspicion against them. They have been charged with fraud and will face up to five years in prison if they are convicted.

When a contractor is paid by a company, it is that contractor’s legal responsibility to report that income to the IRS and submit to taxation. If these fraud claims against this Florida couple are substantiated in court, they will face legal repercussions and may find it hard to be hired again. Any business owner who suspects contracted employees of committing fraud should notify the proper authorities in order to avoid becoming embroiled in a complicated and time consuming legal issue.

Source: bizjournals.com, Former Coral Springs contractors charged with tax fraud, Paul Brinkmann, Sept. 25, 2013