DOJ: Maryland Man Indicted on Tax Charges in Connection With DOJ National Tax Fraud Enforcement Surge

• The surge targeted 76 defendants with alleged losses exceeding $490,000,000.
• The charges involve willful failure to pay and file taxes for Navarrete Brothers Construction, Inc.

The DOJ announced the indictment of Martin Herrera Navarrete, 66, of Glenn Dale, Maryland, for willful failure to collect, account, and pay over taxes, and willful failure to file tax returns. The charges relate to his role as sole owner and officer of Navarrete Brothers Construction, Inc., where he allegedly failed to account for and pay trust fund taxes owed to the IRS on behalf of his employees.

This prosecution is part of the DOJ's first-ever National Tax Enforcement Surge, which resulted in actions against 76 defendants nationwide, with alleged and proven crimes intending an estimated loss of revenue to the federal government of more than $490,000,000. The surge is linked to the Trump Administration’s Task Force to Eliminate Fraud.

• 76 defendants targeted in enforcement surge
• $490,000,000 estimated loss of revenue to federal government

• Review Navarrete Brothers Construction, Inc. for trust fund tax compliance and IRS Form 941 filings.
• Screen for entities named in DOJ's National Tax Enforcement Surge and Task Force to Eliminate Fraud.
• Monitor for typologies involving willful failure to collect, account, and pay over taxes as described in the indictment.

This case highlights the DOJ’s increased focus on tax fraud and related offenses, with a nationwide surge targeting significant losses to the federal government. Compliance officers should be alert to typologies involving willful failure to pay and file taxes, especially in companies where owners have sole control over finances. The surge and its outcomes signal heightened enforcement and scrutiny, making robust internal controls and timely tax filings essential for AML/CFT compliance and risk mitigation.