Five members of the same extended family have been charged in Palm Beach County after investigators alleged they operated a family-run construction fraud enterprise that concealed millions of dollars in payroll, underreported workers’ compensation exposure, and operated unlicensed check-cashing businesses across South Florida. According to investigators, the operation relied on multiple construction companies registered to the same West Palm Beach address, with shell corporations allegedly used to obtain workers’ compensation policies based on artificially low payroll figures.
The investigation alleges the companies "rented" certificates of insurance to uninsured subcontractors, allowing those businesses to qualify for construction projects while avoiding the true cost of workers’ compensation coverage. Investigators contend payroll was routed through the shell companies, with organizers collecting fees while insurers received payroll reports that significantly understated the actual workforce exposure.
Court records allege JNJ Construction Services and MDA Concrete concealed millions of dollars in payroll beyond what was reported to their workers’ compensation carriers. Investigators say the discrepancies resulted in more than $578,000 in avoided workers’ compensation premiums. The affidavit also alleges the companies cashed more than $27 million in payroll checks without the required money service business licenses.
For claims professionals, the case illustrates several recurring fraud indicators, including multiple companies operating from a single address, shared ownership among related entities, significant differences between reported payroll and actual financial activity, and the misuse of certificates of insurance. Workers’ compensation carriers, SIU investigators, premium auditors, and adjusters may view the allegations as another example of how payroll concealment and shell companies can distort underwriting risk while complicating claim investigations and employer accountability.
Authorities charged the defendants with organized scheme to defraud offenses, along with workers’ compensation fraud and unlicensed money service business charges for several individuals. The investigation by the Broward Sheriff’s Office Money Laundering Task Force and the Palm Beach County Sheriff’s Office remains ongoing.
