Thread: Portland businessman convicted of Tax Evasion and Fraud

Oregon is going to go the way of California soon, with more people going than coming. We're following the Golden State off a cliff. This crap has gone unchecked for years in this state and if it weren't for John Kroger taking the office, it would still be going on. Oregon is beautiful but is a horrible place to live. If you move here, check your sanity at the state line!

From Oregonians for Immigration Reform

January 13, 2009

OFIR Members and supporters:

Maurilio Castillo Vega has been convicted of cheating the state government out of at least $8 million in taxes by hiring and paying workers under the table. Vega, an illegal alien, has an ICE hold placed on him at the Marion County Jail.

At a time when the Governor Kulongoski is asking you to pay higher taxes to run state government an illegal alien contractor and the men he hires are cheating the state government out of million of dollars in taxes. Unfortunately this is just the tip of the iceberg. In a report done by Bear Sterns, (The underground labor force is rising to the surface), they estimated that 5 million illegal aliens are paid in cash, cheating the federal government out of $35 billion a year in taxes.

This is another reason why the state legislature needs to pass a bill requiring all companies in Oregon sign up for the E-Verify program.

American citizens should not have to compete with illegal aliens for jobs. American companies should not have to compete for business with companies that cheat by hiring illegal aliens.

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Portland businessman convicted in huge racketeering scam

http://www.kgw.com/news-local/stories/k ... c.html?npc

01:42 PM PST on Tuesday, January 13, 2009
By TERESA BLACKMAN, kgw.com Staff

PORTLAND -- A Portland businessman admitted in court that he bilked the state out of approximately $8 million in unpaid taxes in one of the state's worst fraud schemes in history.

Maurilio Castillo Vega pleaded guilty to one count of racketeering and received a 61-month prison sentence. Attorney General John Kroger said Vega avoided paying income taxes and worker's compensation insurance for as far back as at least 2001.

He said the scam involved paying workers in cash under the table and allowed Vega to bid lower for projects than legitimate companies that paid taxes.

The state Department of Revenue has yet to complete its final assessment, but Kroger said the companies that Vega set up avoided taxes for around $25 million in income, creating a net loss to Oregon of approximately $8 million.

In addition to the lost taxes, the State Accident Insurance Fund estimated that it lost millions in unpaid worker's compensation funds.

Department of Revenue officials described the case as “the most willful and egregiousâ€

Being a "minority contractor" I wonder if he had landed some government contracts along the way.