DOJ indicts construction firm owner, three employees over $5m payroll tax and loan fraud
A federal grand jury has charged Arthur Nelson and three associates tied to his Brooklyn, later New Jersey, construction subcontracting companies with a multi-year scheme spanning employment tax evasion, false corporate filings, undisclosed foreign accounts and fraudulent loan applications. This segment breaks down who is charged with what, the exposure each faces, and where the financial-crime risk sits for lenders and sureties.
- Four defendants charged in EDNY over a scheme running April 2017 to May 2024 involving at least approximately $5 million in unreported wages.
- Nelson allegedly underreported business gross receipts by approximately $13 million and faces two FBAR counts; wire fraud conspiracy carries a 20-year maximum.
- A second scheme allegedly submitted false financial documents to lenders and surety providers; Devocion also charged with grand-jury obstruction.
Executive summary
A federal grand jury in the Eastern District of New York returned an indictment on September 23, 2026 charging Arthur Nelson, of Staten Island and Sunny Isles Beach, Florida; Joseph Free, of Staten Island; Paul Vasquez, of Englishtown, New Jersey;…
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Source documents
https://www.justice.gov/opa/pr/construction-company-owner-and-employees-indicted-wide-ranging-tax-and-financial-fraudRead by Regulus 15 Oct 2026 at 18:08 UTC
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