Oregon check casher sentenced to federal prison for payroll tax scheme involving $177 million

(FEBRUARY 13, 2025) A man from Tualatin, Oregon, David Katz, was sentenced to four years in federal prison for helping construction companies pay workers under the table and avoid taxes. He must also pay over $44 million to the U.S. Internal Revenue Service (IRS).

Between 2014 and 2017, Katz, the president of Check Cash Pacific, Inc., helped construction businesses create fake companies to cash $177 million in payroll checks. The money was used to pay workers off the books, with no taxes withheld. Katz made sure his check-cashing locations had enough cash and allowed false reports to be filed.  

In return, Katz earned a 2% commission, totaling more than $4 million. His scheme helped companies avoid paying over $44 million in taxes.  

In 2021, a federal grand jury charged him with conspiracy and filing false reports. A jury found him guilty in June 2024. The IRS investigated the case, and federal prosecutors handled the trial.