Jose Garcia, a New York-based construction manager, has been sentenced to 27 months in prison for his role in a long-running embezzlement and tax evasion scheme that cost companies and taxpayers millions of dollars. U.S. Attorney for the Southern District of New York, Jay Clayton, announced the sentence, which stems from Garcia's involvement in a $4.5 million embezzlement case and a separate $2.1 million tax fraud.
Garcia, who previously pleaded guilty to wire fraud conspiracy and tax evasion charges before U.S. District Judge Dale E. Ho, was the recipient of the largest share of funds in a scheme that spanned nearly a decade. Judge Ho imposed the 27-month sentence, and Garcia was also ordered to forfeit $4,554,950 and pay $7,007,055 in restitution.
“Jose Garcia engaged in a lengthy embezzlement scheme that involved a no-show job, fraudulent billings, and largescale cash kickbacks,” said U.S. Attorney Jay Clayton. “Garcia then doubled-down and sought to conceal his embezzlement activities by committing another crime – tax evasion. In all, Garcia stole millions at the expense of hard-working, tax-paying Americans. He then used the proceeds of his frauds to fund a lavish lifestyle. For these brazen crimes, Garcia has been sentenced to prison.”
From 2010 to 2019, Garcia worked in collusion with co-defendant Mark Angarola, a senior executive at an IT services contractor. Angarola orchestrated a fraudulent invoicing operation that misled his employer and enriched a network of family, friends, and associates. Among those who benefited was Garcia, who was paid monthly “Management Fees” despite doing no work. The payments, which reached as high as $60,000 per month, were made to Garcia personally and through shell companies he controlled.
Investigators found that Angarola had recruited unqualified individuals—including Garcia, his wife, and other acquaintances—to pose as subcontractors for IT support services. Invoices for fake hours and fabricated business expenses—including restaurant tabs, cruises, hotel stays, and even gentlemen’s club visits—were submitted to Angarola’s employer. Angarola approved them, resulting in millions in losses.
Records show that Garcia used the illicit funds to support an extravagant lifestyle, with expenditures including private school tuition, high-end travel, and luxury purchases from retailers such as Cartier, Hermes, Gucci, and Louis Vuitton. He stayed in upscale hotels like the Ritz Carlton, the Waldorf Astoria, and the Plaza, and spent tens of thousands on luxury goods and collectibles.
In addition to the embezzlement, Garcia also failed to report or pay taxes between 2011 and 2019, creating a separate financial liability for the federal government totaling more than $2.1 million. Prosecutors said Garcia deliberately used shell corporations and diverted income through their accounts to avoid detection and fund his personal expenses.
Three others have pleaded guilty in connection with the same embezzlement scheme.
In addition to his prison term, the 53-year-old Garcia will serve three years of supervised release.
U.S. Attorney Clayton commended the efforts of the FBI’s New York Field Office, IRS Criminal Investigation, and the Department of Labor’s Office of Inspector General. The case was prosecuted by the Southern District’s Complex Frauds and Cybercrime Unit and the Justice Department’s Tax Division. Assistant U.S. Attorneys Michael D. Neff, Timothy V. Capozzi, and Special Assistant U.S. Attorney Jorge Almonte led the prosecution.
Contact:
Nicholas Biase, Shelby Wratchford
(212) 637-2600