Orlando Trio Admits to $58 Million Construction Payroll Fraud Scheme

Three Orlando residents have pleaded guilty to orchestrating a long-running fraud scheme that defrauded insurers and the IRS by misrepresenting payroll and workers’ compensation coverage in Florida’s construction industry. Eduardo Anibal Escobar, Carlos Alberto Rodriguez, and Adelmy Tejada admitted to conspiracy to commit wire and tax fraud, facing up to 25 years in prison combined. The scheme operated between 2015 and 2024 and funneled over $146 million in unreported payroll through shell companies to facilitate the employment of undocumented workers.

The defendants used companies registered in Florida to acquire workers’ compensation policies that only covered a few employees on paper. They then contracted with numerous construction subcontractors, falsely presenting them as employees covered by those policies. Contractors, believing the workers were insured, paid the defendants’ shell companies, which in turn distributed the payroll—keeping a cut of 6% to 8% as a fee.

This fraudulent arrangement resulted in unpaid premiums totaling nearly $13 million and more than $36 million in unpaid employment taxes. Additionally, two Orlando properties purchased with fraud proceeds and over $8.7 million in earnings are subject to forfeiture. Restitution orders have been issued to both the IRS and four insurance carriers that unknowingly covered this disguised payroll.

This case highlights ongoing federal efforts to investigate and prosecute misuse of shell companies and ghost employees in the construction sector. Agencies involved include Homeland Security Investigations, IRS-Criminal Investigation, and the Florida Department of Financial Services.