(Image Credit: IMAGN) The Kentucky Sentate gavel rests on the wooden sound block in the Kentucky Senate chambers before the first day of Concurrence began at the state Capitol in Frankfort, Ky. March 13, 2025.
Riversider, California – The owner of multiple Orange County-based staffing companies was sentenced on Thursday to 96 months in federal prison for willfully evading nearly $30 million in taxes, penalties, and interest, and for aiding in preparing a false tax return to conceal additional tax liabilities.
Luis E. Perez, 56, who has resided in Anaheim Hills, Yorba Linda, and Dove Canyon, was sentenced by U.S. District Judge Kenly Kiya Kato. In addition to the prison sentence, authorites ordered Perez to pay the federal government over $38 million in restitution.
At the sentencing hearing, Judge Kato highlighted the “astonishing” duration of Perez’s criminal activity and the “staggering” financial loss he caused. In September 2024, Perez pleaded guilty to one count of tax evasion and one count of aiding in the preparation of a false tax return.
Perez owned and operated several staffing companies, including Checkmates Staffing Inc., Staffaide Inc., BaronHR LLC, BaronHR West Inc., and Fortress Holding Group LLC. These companies were responsible for withholding federal taxes from employee wages and submitting those funds to the IRS.
According to court documents, from May 2009 through January 2017, Perez failed to pay the IRS payroll taxes for several tax years dating back to 2001. By February 2017, the IRS assessed Perez nearly $30 million in unpaid taxes, interest, and penalties.
To avoid paying, Perez funneled money through his businesses to buy luxury items, including a Ferrari, Rolls Royce, Mercedes-Benz vehicles, a Lamborghini Aventador, and a Duffy boat, hiding ownership under business names or associates. He also used a Visa Black card in someone else’s name—now his wife’s—to pay the bills from business accounts.
In interviews with the IRS, Perez falsely claimed to earn only $1,000 a week from his company BaronHR and denied receiving other income, even though he was transferring substantial funds to himself through his wife.
Even while on pretrial release, Perez continued his illegal conduct. Between October 2018 and August 2019, he submitted false tax returns understating BaronHR West’s wages by approximately $130.8 million, evading more than $29.6 million in federal employment taxes.
After authorities revoked his bond in August 2024 due to further violations, Perez has remained in federal custody. Prosecutors described him as a “prolific employment tax cheat” with a long-standing pattern of fraud and evasion.
