Ukrainian Citizen Pleads Guilty to Tax Fraud and Money Laundering Charges, Causing Over $9.5M in U.S. Tax Loss.

Oleg Oliynyk, a Ukrainian citizen, pleaded guilty to charges of conspiracy to defraud the United States and conspiracy to engage in money laundering. The charges stem from his involvement in a large-scale illegal operation spanning from August 2007 to August 2021, during which Oliynyk, along with several accomplices, ran a network of labor staffing firms based in South Florida.

Illegal Labor Practices in the Hospitality Sector

Tax fraud committed by foreign nationals in the U.S. is a serious issue that undermines the country's financial integrity. According to court documents and statements presented during the proceedings, Oliynyk managed a number of labor staffing companies, including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC, and Tropical City Group LLC. These companies were used as vehicles to employ non-resident aliens in the hospitality industry who were not authorized to work in the United States. By doing so, Oliynyk and his associates enabled these workers to evade federal income and employment tax assessments, which led to significant tax violations.

The staffing firms also provided a cover for the illegal activities, allowing Oliynyk and his co-conspirators to avoid scrutiny while profiting from workers who were employed without proper legal authorization. This operation enabled them to underreport wages, undercut competitors, and avoid paying taxes on earnings.

Money Laundering Scheme Exposed

In addition to the labor fraud, the conspiracy included a sophisticated money laundering scheme. Oliynyk and his associates laundered over $11 million through various channels to conceal the illicit origin of their profits. This amount represents the financial scale of the fraudulent activities and demonstrates the complexity and scope of the operation, which spanned several years and involved multiple entities across the United States.

Legal Ramifications for Oliynyk

The legal consequences for Oleg Oliynyk are severe. As part of his plea, Oliynyk faces a maximum sentence of 20 years in prison for his involvement in the money laundering conspiracy. He also faces up to five years in prison for the conspiracy to defraud the United States. However, the final sentencing will be determined by a federal district court judge, who will consider U.S. Sentencing Guidelines and other relevant statutory factors.

The guilty plea was announced by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida. The sentencing hearing will be scheduled in the near future, as Oliynyk’s legal team awaits the final determination of his punishment.

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