Drywall contractor sentenced in tax-evasion scheme, faces immigration

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US District Court
US District Court

MANCHESTER, NH – Drywall contractor Cruz E. Galvan, 39, of Manchester was sentenced Feb. 9  to serve 18 months in federal prison for an under-the-table payroll scheme that cost the U.S. Treasury more than $750,000.

Galvan must also pay restitution, and immigration proceedings have been initiated due to Galvan’s undocumented status.

Galvan previously pleaded guilty to one count of Federal Employment Tax Evasion based upon his admitted scheme to dodge federal employment taxes on wages he paid to employees of his Manchester dry wall business, Four Star Drywall, LLC. During his plea hearing, Galvan admitted that from April 2010 until December 2012, he paid the employees of Four Star Drywall with vouchers instead of with checks. He further admitted that he instructed those employees to present the vouchers to a local check cashing business to which he had previously provided funds and instructions to pay the vouchers upon presentment in cash.

Galvan acknowledged that he did not report to the Internal Revenue Service the wages he paid in that fashion, thereby evading federal income tax withholding and Social Security, Medicare and federal unemployment taxes.

In addition to the 18-month prison term, Judge McAuliffe ordered Galvan to pay $786,553 in restitution to the Internal Revenue Service, $100,000 of which Galvan had paid in anticipation of the restitution order several weeks before today’s sentencing hearing.

Immigration proceedings have been commenced to remove Galvan, an undocumented immigrant, from the U.S. after he serves his sentence.
The investigation of Galvan was led by the Manchester offices of the Internal Revenue Service, the Department of Homeland Security and the Department of Labor, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.

About this Author

Carol Robidoux

PublisherManchester Ink Link

Longtime NH journalist and publisher of ManchesterInkLink.com. Loves R&B, German beer, and the Queen City!