MIAMI -- The head of the popular, longtime check-cashing company called La Bamba is among 12 people arrested Friday morning in connection with what federal investigators are calling a $50 million check-cashing scheme.

Internal Revenue Service agents raided La Bamba on Bird Road near Southwest 74th Avenue.

Juan Rene Caro, 41, the owner of La Bamba, will make his first appearance in court Friday afternoon, along with the others charged.

Alex Acosta, United States Attorney for the Southern District of Florida, said the scheme worked like this: A number of unnamed construction companies in Miami would write large checks to made-up shell companies that never existed. La Bamba would cash those checks and the money would be returned to the original existing company. La Bamba would then file false reports with the IRS.

"La Bamba concealed the fact that it provided over $50 million in cash in just over two years to various contractors," Acosta said.

Michael Yasofsky, special agent in charge for the IRS, said there were various reasons why a company would want to conduct business under the table.

"If there is money paid out in cash for wages, the business involved may or may not be paying employment taxes on the wages paid out to those workers," Yasofsky said.

The investigation is continuing and more charges are expected.