5 local people among 7 charged in alleged $100M Florida workers' comp fraud scheme
www.cbs12.com, Eric Weiss, August 12, 2026
WEST PALM BEACH, Fla. (CBS12) — Florida Attorney General James Uthmeier announced charges Wednesday against seven people accused of running a workers’ compensation fraud and unlicensed money-service scheme that processed nearly $100 million.
Most of the defendants are from the CBS12 News viewing area. Five of the seven are from Palm Beach County or the Treasure Coast: Marlen Suazo Gutierrez and Eduardo Blandon Martinez of West Palm Beach; Gustavo Lara Suazo and Alejandra Lagos Matute of Lake Worth; and Erick Blandon of Port St. Lucie.
The other defendants are Blanca Ramirez Farina of Deerfield Beach and Eduardo Olivera Leal of Ocala.
According to the Attorney General’s Office, the defendants created and controlled shell construction companies that obtained workers’ compensation insurance policies by allegedly underreporting the number of employees and the amount of payroll.
Prosecutors allege the defendants then “rented” certificates of insurance to uninsured subcontractors for a fee.
Investigators also say the same network processed and cashed contractors’ payroll checks through an unlicensed money-service business, with cash distributed directly to some workers.
The Attorney General’s Office said physical surveillance showed defendants working from the same location to process payroll checks and distribute cash.
Nearly $100 million was processed through the shell companies during the investigation, according to the state. Law enforcement also seized more than $2.4 million in connection with the case.
“This criminal enterprise systematically exploited Florida’s workers’ compensation system for personal gain,” Uthmeier said. “They undercut legitimate contractors, defrauded insurance companies, and operated an illegal money-service operation that moved nearly $100 million.”
The defendants face charges including organized scheme to defraud, operating as an unlicensed money service business and workers’ compensation fraud. Some also face money laundering and operating as an unlicensed money transmitter charges.
The investigation was led by the Broward Sheriff’s Office Division of Covert Operations Money Laundering Task Force, with assistance from the Palm Beach County Sheriff’s Office and the Office of Statewide Prosecution.
The case is being prosecuted in the 15th Judicial Circuit by Senior Assistant Statewide Prosecutors Storm Tropea and Erica Arboleya.