Federal Prosecutors Uncover Over $1.5 Million in Tax Fraud as Additional Cases Move Forward

The U.S. Department of Justice reports in its press release (quotation, not an independent finding): “PORTLAND, Ore.— A federal grand jury in Portland has returned an eight‑count indictment charging Rosa Cazares , Chief Executive Officer of La Mota, LLC, and 503 Staffing LLC, with willfully failing to collect, account for, and pay over federal payroll taxes, announced Scott E. Bradford, United States Attorney for the District of Oregon. According to the indictment, Cazares—who resided in Portland and oversaw the financial affairs of both La Mota, a cannabis business, and 503 Staffing, a payroll processing company—was responsible for withholding federal income taxes and Social Security and Medicare taxes from employee wages and remitting those funds to the Internal Revenue Service (IRS). Employers are required to deposit these withheld “trust fund” taxes, as well as their own matching contributions, on a quarterly basis and to file a Form 941 federal employment tax return. The indictment alleges that between March 2020 and December 2021, Cazares failed to collect, truthfully account for, or pay over required trust fund taxes for La Mota and 503 Staffing. Across eight calendar quarters, the unpaid trust fund taxes totaled $1,542,413 . Each quarter of nonpayment constitutes a separate criminal count under 26 U.S.C. § 7202 , which prohibits willful failure to collect or pay over taxes. If convicted, Cazares faces up to five years in federal prison, fines, and restitution for each count. An indictment is only an allegation of criminal conduct. A defendant is presumed innocent unless and until proven guilty in a court of law. The case is being prosecuted by Assistant U.S. Attorne”