South Florida residents among 7 accused in $100 million workers’ comp scheme
Five residents of
The investigation, conducted by the Broward Sheriff’s Office and Palm Beach County Sheriff’s Office, began in
Shortly after the investigation began, detectives identified nine more shell construction companies with the same
Attorney General
In the scheme, the shell companies were used to obtain workers’ compensation insurance policies by “significantly” underreporting their number of employees and their payroll amount, the Attorney General’s Office news release said.
In workers’ compensation fraud schemes, companies are created and obtain minimal workers’ compensation insurance and employers’ liability policies and then offer the company names and certificates of insurance to be “rented” to other uninsured subcontractors to use for a fee, according to the affidavits.
“This allows payroll to pass through the ‘shell companies’ undetected, as it is never reported to any entity for any purpose,” the affidavits said.
The family enterprise in the scheme “rented” their certificates of insurance to uninsured subcontractors for a fee and allegedly processed and cashed the contractors’ payroll checks through an unlicensed money service business, including for workers who were undocumented immigrants and people living in the country illegally, according to the news release.
“Physical surveillance established that the defendants worked and operated from the same location to process payroll checks and distribute cash directly to workers,” the Attorney General’s Office said. “Over the course of the investigation, nearly
Detectives seized more than
Investigators determined the scheme was operated out of the MLS Paralegal Services office located in the 2600 block of
Suazo oversaw all operations of three of the 10 companies investigated, while Gutierrez oversaw four others, according to the affidavit. They allegedly prepared fake invoices and payroll envelops from which they took an agreed percentage of money from, ranging between 6 to 8 percent, and collected payroll checks from work site “team leaders.”
The payroll checks would then be deposited into various business bank accounts, and business checks would then be written to the personal name of the various business owners. Leal would then cash the checks, the affidavit said. The process “was done to circumvent check cashing limits for businesses for workers’ compensation policies.”
Several days during any given work week, Leal would deposit as much as
After surveilling the office address on multiple dates, investigators wrote in the affidavit: “The heavy and high volume of construction workers dropping off payroll checks (Over 50 daily) and collecting salary is obvious.”
Farina, Matute, Martinez and Blandon were also found to be working and operating out of the address under the direction of Gutierrez and Suazo, the affidavit said.
Gutierrez on Monday in
Last month, Suazo, Matute, Blandon and Farina pleaded not guilty to charges of organized scheme to defraud, operating as an unlicensed money service business and workmans’ compensation fraud, court records show. Leal has not yet entered a plea to charges of money laundering and operating as an unlicensed money service transmitter.
Court records were not available Wednesday in Martinez’s case.
©2026 South Florida Sun-Sentinel. Visit sun-sentinel.com. Distributed by Tribune Content Agency, LLC.


Gold Gains As U.S. Interest Rates Left Unchanged
NJ towns, school districts owe millions to public worker health plans
Advisor News
- IRI pitches retirement agenda to Jeffries as democrats shape affordability platform
- Help child-free clients plan for their later years
- When new investment trends emerge, Gen Z is most likely generation to be first in
- Could ‘plain English’ become an advisor’s secret weapon?
- IRI urges Senate action on 403(b) parity legislation
More Advisor NewsAnnuity News
- Guidance, bulletin or reg? NAIC debates form of annuity illustration update
- Nationwide adds mutual fund-linked strategy to New Heights Select FIA
- NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
- NAIC working group pressed to accelerate annuity illustration overhaul
- State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
More Annuity NewsHealth/Employee Benefits News
Life Insurance News