July 14, 2022
Jesus Jose Mendez, co-owner of
J&J Drywall, Inc., was sentenced to
3 years probation and ordered to pay
$2.8 million to the IRS, and
$62,730 to the MA DOL for evading income and employment taxes, and not making the requisite state unemployment contributions. From 2013 to 2017, defendants cashed over $16 million in business checks at check-cashing businesses and would leave cash-filled backpacks at their worksites from which to pay their employees. Meanwhile, deposits into the J&J bank account during this same timeframe equaled only $4 million, and deposits were frequently structured in amounts less than $10k, evading reporting requirements. Federal tax losses are estimated at just over $2.8 million, and the loss to MA DOL equaled nearly $63,000.
Jamie Zambrano, Mendez’s business partner, is currently a fugitive.
USAO RI