12 Sentenced in Construction Scam in Myrtle Beach Area

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Twelve sentenced in Myrtle Beach area construction scam.
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A scheme to pay undocumented immigrants off the books with cash has resulted in 12 people who worked for or owned seven construction companies in the Myrtle Beach area to be sentenced for fraud, according to U.S. Attorney Corey F. Ellis.

The felony charges and guilty pleas came after a multi-year undercover operation by the Internal Revenue Service and Homeland Security Investigations. The cash payments totaled at least $15 million, Ellis reports.

The IRS and HSI began an investigation into illegal check cashing in 2018 in the construction industry in parts of coastal South Carolina. In 2019, undercover IRS agents “embedded themselves in the Myrtle Beach area and recorded multiple interactions with the various defendants’ companies,” according to a U.S. Attorney’s Office news release.

Those being investigated were using unlicensed check cashers to pay the workers in cash. They would meet with the cashers in places like parking lots for stores and coffee shops, the release said.

The casher would create a company that the defendants would write a business check to. The casher would then hand over a bag of cash for that amount, minus a 3% fee, according to the release. The cash would then be used to pay the workers.

“To make it appear like the employees had valid insurance on jobsites, the check casher would also provide a certificate of workers’ compensation insurance that was not actually valid for any of the construction company’s employees,” the release said. “The parties agreed that the check casher would, on paper, claim to be a subcontractor who provided the employees and provided insurance.”

The release adds, “The check casher only provided a way to hide the true nature of the scheme, to allow the construction company to hire unauthorized aliens and to pay workers with untaxed cash.”

Each of the 12 defendants have been sentenced in federal court to five years’ probation, with all but one sentenced to home confinement. They also must pay restitution to the government for the $3 million in tax losses.

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They were given probation because they admitted guilt early, assisted authorities, paid collectively $1 million toward the restitution and agreed to continue monthly payments, the release said. They pleaded guilty to one charge each of “felony count of conspiracy to defraud the United States and one misdemeanor count of unlawful employment of aliens.”

Those sentenced and their companies are as follows:

Daniel Lavoie Construction Services

  • Daniel A. Lavoie, 49, of Conway: Five years’ probation, 18 months home confinement with location monitoring, and $293,402.50 in restitution
  • Enrique R. Reyes, 48, of Conway: Five years’ probation, 18 months home confinement with location monitoring, and $293,402.50 in restitution

Duran Masonry

  • Walter A. Duran, 45, of Myrtle Beach: Five years’ probation, 21 months home confinement with location monitoring, and $976,076.08 in restitution
  • Lisa Caulley Sellers, 57, of Myrtle Beach: Five years’ probation, eight months home confinement with location monitoring, and $488,038.04 in restitution

Extreme Siding

  • Ming Xue Nan, 52, of Myrtle Beach: Five years’ probation, 14 months home confinement with location monitoring, and $173,712.43 in restitution
  • Katherine L. Welker, 39, of Myrtle Beach: Five years’ probation, eight months home confinement with location monitoring, and $173,712.43 in restitution

Master Homes Calabash

  • Josafa P. Neto, 43, of Myrtle Beach: Five years’ probation, 18 months home confinement with location monitoring, and $209,847.07 in restitution
  • Marylany Hardman Levino, 36, of Myrtle Beach: Five years’ probation and $209,847.07 in restitution

Metro Concrete Finishers

  • Saul Prieto, 56, of Myrtle Beach: Five years’ probation, nine months home confinement with location monitoring, and $74,868.50 in restitution
  • Martha E. Zarate, a/k/a Martha E. Prieto, 54, of Myrtle Beach: Five years’ probation, nine months home confinement with location monitoring, and $74,868.50 in restitution

Master Homes Design Center

  • Marcos Caetano De Almeida, 45, of Myrtle Beach: Five years’ probation, 21 months home confinement with location monitoring, and $298,816.52 in restitution

Paint By Numbers

  • Johanna A. Carpio, 38, of Myrtle Beach: Five years’ probation, 14 months home confinement with location monitoring, and $131,449.69 in restitution

“These defendants stole money from South Carolina taxpayers; they stole opportunities from those in the construction industry who did the right thing, and they stole safety from the workers who labored on jobsites without insurance,” Ellis said. “This successful prosecution was only possible because of the tireless and dedicated investigative efforts of IRS and HSI, as well as the work of our local partners.” That included the Myrtle Beach Police Department. Assistant U.S. Attorneys Derek A. Shoemake and Carrie Fisher prosecuted the case.

He noted that none of those convicted had prior criminal records; some could be deported and some have lost their homes and face financial ruin because of their choice to skirt the law. “This case should be a message to businesses and individuals who try to get ahead by breaking the law; it is not worth it because we are watching you and we will prosecute you,” he said.