Monday, August 17th, 2026 — Florida authorities charged seven people in an alleged workers’ compensation fraud and unlicensed money-service operation that investigators say processed nearly $100 million in payroll through a network of shell construction companies.
According to the Florida Attorney General’s Office, the companies obtained workers’ compensation insurance policies by substantially underreporting their employee counts and payroll. Authorities allege certificates of insurance associated with the companies were then provided to otherwise uninsured subcontractors in exchange for fees.
Investigators also allege the same operation processed and cashed contractors’ payroll checks through an unlicensed money service business. Surveillance cited by authorities showed participants working from the same location to process payroll checks and distribute cash directly to workers. Law enforcement seized more than $2.4 million in connection with the investigation.
The defendants face charges that include organized scheme to defraud, workers’ compensation fraud and operating an unlicensed money service business. Some also face money laundering and unlicensed money transmitter charges. The allegations have not been proven in court.
For workers’ compensation insurers and claims professionals, the case highlights the difficulties created when payroll records, employee counts and subcontractor relationships do not reflect actual operations. Misrepresented payroll can affect premium calculations and underwriting, while improperly used certificates of insurance can complicate efforts to determine which employer or insurer is responsible when an injury occurs.
Construction claims can be particularly sensitive to these arrangements because multiple contractors and subcontractors may work on the same project. When questions arise about an employer’s coverage, adjusters may need to examine certificates of insurance, policy records, payroll documentation, employment relationships and contractor agreements rather than relying on a certificate alone.
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 Florida’s Office of Statewide Prosecution.
