Feb 10, 2016 11:52 AM

Manchester drywall contractor sentenced to 18 months in payroll scheme

The Associated Press

CONCORD (AP) — Prosecutors say a drywall contractor has been sentenced to 18 months in federal prison for a payroll scheme that cost the U.S. Treasury more than $750,000.

Cruz Galvan of Manchester had pleaded guilty to tax evasion after he admitted dodging federal employment taxes on wages paid to employees of his dry wall business, Four Star Drywall, LLC.

The 39-year-old Galvan admitted from April 2010 to December 2012 he paid his workers with vouchers instead of checks, instructing them to present the vouchers to a local check cashing business he provided funds to.

Galvan acknowledged that he didn't 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.

He's paid back $100,000.

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