Posted: Wednesday, Jun 27, 2007 - 08:30:31 am CDT

Developer pleads guilty to tax charges involving illegal workers

By DAVID A. LIEB
Associated Press Writer

A developer of luxury lake condominiums pleaded guilty Tuesday to not paying taxes on his construction workers, including some who were illegal immigrants.

But under a plea agreement, developer Michael Schlup could avoid prison if he pays all of his back taxes and penalties before his scheduled Oct. 17 sentencing date.

Attorney General Jay Nixon contends Schlup used as many as 30 undocumented workers while building the Plaza Gardens on the Lake condominium complex near Sunrise Beach on the Lake of the Ozarks, a popular Midwest tourist destination. Nixon's office said Schlup pleaded guilty to 14 charges of failing to withhold or submit payroll taxes to the state.

“This prosecution and the plea that resulted from it should send a strong message that we won't tolerate this type of conduct, motivated by greed, that allows unscrupulous employers to gain and advantage over those businesses that play by the rules,â€