Midland Woman Faces Federal Prison Time for Defrauding the IRS

MIDLAND, TX –– A Midland businesswoman is facing years in prison after pleading guilty to not paying federal payroll taxes. 

According to court records, Lydia Evaro Madrigal, the president, and chief executive officer of EXN, Inc., withheld payroll taxes from its employees’ paychecks but did not make the required payroll tax payments to the IRS between 2013 and 2015.

Investigators determined the 64-year-old failed to pay $637,594.35 in payroll taxes withheld from employees and $249,536.35 in FICA taxes. Instead of paying the federal government, Madrigal used the money for her benefit.

As of this week, Madrigal has voluntarily paid the losses to the IRS in full.

Madrigal will be sentenced later this year and could face a maximum penalty of five years in prison.