Investigations

On April 14, 2023, the U.S. District Court for the Northern District of Iowa sentenced Kevin Alexander to 24 months of incarceration, 24 months of supervised release, a $20,000 fine, $1,678,722.39 in restitution, and a $100 special assessment. In November 2022, Alexander pleaded guilty to employment tax evasion. Previously, Alexander was indicted for conspiracy and tax evasion.

 

The investigation revealed that, from 2014 until 2017, Alexander's company, K&L Construction, Inc., paid approximately $3.8 million in wages to its employees, withholding approximately $1 million in income and Social Security and Medicare taxes. Alexander did not pay those withholdings to the Internal Revenue Service (IRS). When the IRS attempted to collect K&L’s unpaid employment taxes, Alexander submitted a form concealing the full amount of the company’s available assets. The investigation was initially based on a $16 million Federal Highway Administration-funded construction project on which K&L was a subcontractor.

 

DOT-OIG is conducting this investigation with the IRS Criminal Investigation Division.