The owner of a Monmouth County construction and demolition business is admitting to not paying employment and personal incomes taxes to the IRS, among other illegal activity regarding finances.

Don Farrall, Getty Images

Listen to Vin Ebenau mornings on Townsquare Media Jersey Shore Radio Stations, email him news tips here, and download our free app.

Acting U.S. Attorney Rachael A. Honig announced the guilty plea Wednesday of Peter Alvarez, 54, of Atlantic Highlands, on one count each of employment tax evasion and personal income tax evasion.

Alvarez was the owner of 'Mr.Demo' between 2011 and 2016 and during that time was supposed to be reporting to the IRS about taxes but withheld that information and taxes as well as FICA taxes for all his employees and then failing to pay those taxes every quarter.

Attorney Honig also explained that Alvarez cashed checks issued by clients and then used some of the cash to pay employees wages.

By using cash to pay Mr. Demo’s employees, Alvarez concealed from the IRS his payment of employees’ wages and his failure to report, account for, and pay employment taxes of a total of $177,649. Count 1 of the information to which Alvarez pleaded guilty referred to Alvarez’s evasion of employment taxes of $23,618 for the first quarter of 2016," Honig said in a statement following court proceedings.

Alvarez filed individual federal tax returns for the calendar years 2011 to 2016 between August 1 of 2012 and October 23 of 2017 and during that time period, "falsely and substantially understated Mr. Demo’s total gross receipts by not reporting the numerous checks issued by Mr. Demo’s clients that he cashed."

During that time he owed additional income tax of $432,019 on Mr. Demo’s unreported gross receipts less allowable payroll expenses.

"Count 2 of the information to which Alvarez pleaded guilty referred to Alvarez’s evasion of personal income tax of $89,190 for calendar year 2013."

As part of  his guilty plea agreement, Alvarez has agreed to make full restitution to the IRS of $609,668.

Each charge of tax evasion carries a maximum potential penalty of five years in prison and a maximum $250,000 fine.

Sentencing is scheduled for Oct. 28, 2021.

The government is represented by Assistant U.S. Attorneys J Fortier Imbert and Sara F. Merin of the Special Prosecutions Division in Newark.

Defense counsel: Jerome A. Ballarotto Esq., Hamilton, New Jersey.

Trending News in Lakewood