Cary Businessman Sentenced to Prison for Over $1 Million in Tax Evasion Scheme Publisher: U.S. Attorney's Office, Eastern District of North Carolina Dateline: Raleigh, North Carolina Date: 3 December 2024 Subjects: American Government , Crime

RALEIGH, N.C. – Arturo Barcenas Gonzalez, a Cary businessman, was sentenced to 37 months in federal prison, followed by three years of supervised release, for evading over $1 million in federal taxes. In addition to his prison sentence, Barcenas was ordered to pay restitution to the Internal Revenue Service (IRS) in an amount to be determined at a later date.

“We are turbocharging white collar enforcement in North Carolina with groundbreaking state and federal partnerships,” said U.S. Attorney Michael F. Easley, Jr. “This businessman’s convoluted scheme involved titling cars for cash and using that cash to creatively conceal his income and fuel a lifestyle complete with high-end vehicles and a million-dollar home. This partnership with NC Division of Motor Vehicles, Homeland Security Investigations, and the NC Department of Insurance worked together seamlessly with IRS to build the case.”

According to court documents and other information presented in court, Barcenas operated multiple businesses in Cary, including Barcenas Insurance Agency, LLC (BIA) and Barcenas Financial Services, LLC (BFS).  BIA, a retail insurance provider, offered both traditional and automotive insurance policies. Investigations revealed that BIA operated a high-volume, cash-intensive business that included registering and titling vehicles for undocumented individuals using fraudulent business names and certificates. BFS, on the other hand, specialized in tax return preparation for federal and state filings.

The investigation disclosed that in July 2018, Barcenas filed a falsified 2017 federal income tax return that concealed over $300,000 in business revenue. Subsequent evidence showed Barcenas stopped filing tax returns entirely after that year, despite generating receipts exceeding $1 million annually between 2018 and 2022. To evade IRS scrutiny, Barcenas used various methods, such as titling assets under nominees, depositing business proceeds into personal accounts, and handling large amounts of cash to conceal income. Barcenas used his untaxed gains to fund his personal lifestyle, including the purchase of high-end vehicles and a $1 million residence.

In May 2023, federal agents executed a search warrant at Barcenas’s Cary offices. The operation led to the recovery of multiple income-related documents indicating that Barcenas had misled federal investigators in prior interactions. The total estimated tax loss attributable to his actions amounted to over $1 million for the tax years 2018 through 2021.

Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina, made the announcement after the sentencing by United States District Judge Louise W. Flanagan. IRS-Criminal Investigation, based in Raleigh, investigated the case.  The U.S. Department of Homeland Security, Homeland Security Investigations, the North Carolina Department of Insurance, and the North Carolina Department of Motor Vehicles also provided valuable assistance.

Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-376-FL.

Updated December 3, 2024