Home / Crime and Justice / Florida Residents Linked to $100M Fraud
Florida Residents Linked to $100M Fraud
13 Aug
Summary
- Seven individuals are charged in a $100 million workers' compensation fraud scheme.
- Shell companies were used to underreport payroll and employee numbers.
- Investigators seized over $2.4 million in connection with the fraud.
A sweeping investigation has uncovered a nearly $100 million workers' compensation fraud scheme, leading to charges against seven individuals, including residents from Broward and Palm Beach Counties. The enterprise allegedly operated through shell companies, including JYK Construction Concrete Inc., with a common West Palm Beach address.
These shell companies were instrumental in obtaining workers' compensation insurance by falsely underreporting employee numbers and payroll. This allowed uninsured subcontractors to "rent" their insurance certificates for a fee, facilitating illicit payroll processing.
The family-run criminal enterprise allegedly processed approximately $100 million in payroll through these shell companies. Investigators seized over $2.4 million in assets linked to the scheme, which operated out of an office on South Military Trail in West Palm Beach.
Key figures, including Marlen Suazo Gutierrez and Gustavo Lara Suazo, managed various shell companies. Eduardo Olivera Leal allegedly cashed checks to circumvent financial limits, depositing substantial sums into a hidden safe. Several defendants have pleaded not guilty to charges including organized scheme to defraud and workers' compensation fraud.
