Date: 02-09-2016

Case Style: United States of America v. Cruz E. Galvan

Case Number: 1:15-cr-00142-SM

Judge: Steven A. McAuliffe

Court: United States District Court for the District of New Hampshire (Merrimack County)

Plaintiff's Attorney: Bill Morse

Defendant's Attorney: Ted Lothstein

Description: Concord, MH - Queen City Drywaller Jailed For Under-The-Table Payroll Scheme

a New Hampshire drywall contractor was sentenced today to federal prison for an under-the-table payroll scheme that cost the U.S. Treasury more than $750,000. Senior United States District Judge Steven A. McAuliffe sentenced Cruz E. Galvan, age 39, of Manchester, New Hampshire, to eighteen months in federal prison and ordered him to pay restitution to the U.S. Treasury.

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, New Hampshire 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 eighteen-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 alien, from the United States after he serves his sentence.

The investigation of Galvan was led by the Manchester, New Hampshire offices of the Internal Revenue Service, the Department of Homeland Security and the Department of Labor, Office of Inspector General.

Outcome: See above

Plaintiff's Experts:

Defendant's Experts:

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