Cazares Pleads Not Guilty in Payroll Tax Case
The La Mota cannabis chain CEO faces an eight-count federal indictment over more than $1.5 million in unpaid payroll taxes.
Updated on Nov. 6, 2026 in Crime — General
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Rosa Cazares, chief executive officer of the cannabis chain La Mota, pleaded not guilty to an eight-count federal indictment at her first federal court appearance on Thursday. The indictment charges her with failing to pay more than $1.5 million in federal payroll taxes on time.
Why it matters
The case centers on who within a cannabis business is legally responsible for remitting employee withholding taxes to the IRS, a question the defense disputes. The outcome could shape how responsibility for payroll tax obligations is assigned within closely held companies.
Cazares pleaded not guilty to eight counts, and the prosecution agreed to her continued release. A six-day jury trial before U.S. District Judge Karin J. Immergut is scheduled to begin January 5, 2027.
The players
Rosa Cazares
Chief executive officer of the cannabis chain La Mota, who is facing the federal payroll tax indictment and has pleaded not guilty.
Karin J. Immergut
U.S. District Judge presiding over the case, who is scheduled to preside over the six-day jury trial beginning January 5.
The details
The indictment alleges Cazares was responsible for paying IRS employment taxes withheld from staff wages at La Mota and 503 Staffing, the payroll company that processes La Mota's payroll. Her lawyer, Ronald Hoevet, denied the allegations, and at least a dozen supporters attended the hearing.
Timeline
- March 2020 to December 2021: Period in which the indictment alleges unpaid federal taxes accrued.
- October 15, 2026: Indictment issued, at the tax-extension deadline.
- November 5, 2026: Cazares made her first federal court appearance and pleaded not guilty.
- January 5, 2027: Six-day jury trial scheduled to begin.
Legal Context
Federal prosecutors treat unpaid employee withholding taxes as a serious offense under IRS rules, and this indictment applies that framework to a cannabis business. Cannabis companies, which face federal restrictions, have frequently encountered tax disputes, making this case part of a broader pattern of federal tax enforcement in the industry.
Employees whose withheld wages go unremitted can be affected when payroll taxes are not paid on time, since those funds are held for the IRS. The case underscores that businesses processing payroll through third-party providers must confirm that withholding is actually being remitted.
The takeaway
Payroll tax obligations carry personal liability for those with authority over tax payments, not only for owners. Businesses should verify that withheld employee taxes are actually being remitted, especially when a third-party payroll company is involved.
What happens next
A six-day jury trial before Judge Karin J. Immergut is scheduled to begin January 5, 2027.
Further reading
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Source note: This article includes information reported by Oregon Live.
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