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

Greenbelt, Maryland - The U.S. Attorney's Office for the District of Maryland announced, today, that a Maryland man is facing indictment as part of a nationwide enforcement action led by the Justice Department's National Fraud Enforcement Division, Internal Revenue Service, and Internal Revenue Service - Criminal Investigation targeting tax fraud and related offenses.

Between early September and today, the National Fraud Enforcement Division's Tax Section, and U.S. Attorneys' Offices across the country, participated in the Department's first-ever National Tax Enforcement Surge. The surge of nationwide resources resulted in prosecutorial actions against 76 defendants whose alleged and proven crimes intended an estimated loss of revenue to the federal government of more than $490,000,000.

In the District of Maryland, Martin Herrera Navarrete, 66, of Glenn Dale, is charged with willful failure to collect, account, and pay over taxes, and willful failure to file tax returns. The charges stem from Navarrete failing to account for and pay over trust fund taxes owed to the IRS on behalf of Navarrete's employees. This prosecution is part of the Trump Administration's Task Force to Eliminate Fraud.

Kelly O. Hayes, U.S Attorney for the District of Maryland, announced the indictment with Assistant Attorney General Colin McDonald, DOJ Fraud Division; Frank Bisignano, Chief Executive Officer, Internal Revenue Service; and Chief Jared Koopman, Internal Revenue Service-Criminal Investigation (IRS-CI).

"This prosecution sends a clear and strong message that we will root out fraudsters, charge cheaters, and bring justice to those who think our tax laws don't apply to them," Hayes said. "Tax fraud not only harms the federal government, but also adversely affects every American who plays by the rules. We're committed to continuing to work with our law-enforcement partners to apply these laws, which is essential to maintaining fairness, accountability, and public confidence."

According to the indictment, Navarrete, who served as sole owner and sole corporate officer of Navarrete Brothers Construction, Inc. (NBC), exercised significant control and authority over NBC's finances. Among his responsibilities, he was supposed to collect trust-fund taxes, account for employment taxes by filing Forms 941 with the IRS, and pay the IRS the trust fund taxes for NBC's employees.

However, from September 2020 through December 2025, Navarrete allegedly willfully failed to truthfully account for and pay over the taxes owed to the IRS on behalf of NBC's employees, which were withheld from employees in trust for the U.S. Treasury. The indictment further alleges that Navarrete willfully failed to file U.S. Corporate Income Tax Return and Individual Tax Return forms for calendar years 2020-2024.

An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

If convicted, Navarrete faces a maximum of five years in federal prison for willful failure to collect, account, and pay over taxes, and a maximum of one year for willful failure to file tax returns.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

U.S. Attorney Kelly O. Hayes commended the IRS-CI for its work in the investigation. Hayes also thanked Assistant U.S. Attorney Joshua Rosenthal and Fraud Division Trial Attorney Catriona Coppler who are prosecuting this federal case.

For more information about the Maryland U.S. Attorney's Office, its priorities, and resources available to report fraud, please visit justice.gov/usao-md and justice.gov/usao-md/report-fraud.

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