Investigators say about $2.4M in cash was seized when they made the bust after extensive surveillance in Broward and Palm Beach counties.
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Seven people have been charged in a multimillion-dollar workers’ compensation scheme in Florida that also involved unlicensed money services.
Attorney General James Uthmeier announced that the case involved bogus construction companies and a business that provided money services in order to bilk about $100 million from workers’ compensation insurers.
Uthmeier said those arrested are accused of establishing shell corporations that created fake rosters of employees and then made up payroll amounts in an elaborate South Florida ring.
“This criminal enterprise systematically exploited Florida’s workers’ compensation system for personal gain,” Uthmeier said in a news release.
“They undercut legitimate contractors, defrauded insurance companies, and operated an illegal money-service operation that moved nearly $100 million. Thanks to the outstanding work of the Broward County Sheriff’s Office, the Palm Beach County Sheriff’s Office, our Statewide Prosecutors, we have dismantled this network and will hold every participant accountable.”
Uthmeier added that those arrested are suspected of providing fake certificates of insurance to other subcontractors who were uninsured. The scheme also used those unlicensed money service businesses to cash payroll checks for contractors. Investigators believe the network funneled fees from the bogus insurance certificates and the illegal money-service proceeds directly to the seven suspects running the operation.
Investigators observed the suspects operating the setup at one location where they processed payroll checks and distributed cash directly to employees of the contractors. After extensive surveillance, the investigators estimated about $100 million in transactions had occurred. When officials made arrests, some $2.4 million in cash was seized in connection to the case.
While the investigation centered on Palm Beach and Broward counties, some of those arrested were from Port St. Lucie and Ocala as well.
Those arrested include Marlen Suazo Gutierrez, Gustavo Lara Suazo, Eduardo Blandon Martinez, Alejandra Lagos Matute, Erick Blandon, Blanca Ramirez Farina and Eduardo Olivera Leal.
Charges facing the suspects include organized scheme to defraud, operating as an unlicensed money service business and workers’ compensation fraud. Additional charges against some of the suspects include money laundering and operating as an unlicensed money transmitter.
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