WEST PALM BEACH, Fla. — Five members of the same extended family have been charged in what investigators describe as a family-run construction fraud ring that allegedly used shell companies to conceal millions of dollars in payroll, avoid workers’ compensation insurance premiums and operate unlicensed check-cashing businesses across South Florida.
According to a 195-page arrest affidavit filed in Palm Beach County, investigators with the Broward Sheriff’s Office Money Laundering Task Force and the Palm Beach County Sheriff’s Office allege the group operated an organized enterprise through multiple construction companies based out of the same West Palm Beach address.
The five defendants arrested by Palm Beach County Sheriff’s Office are:
- Marlen L. Suazo Gutierrez, who investigators identify as the alleged leader of the enterprise
- Gustavo Lara Suazo
- Blanca Cecilia Ramirez Farina
- Alejandra…
PAYROLL & HR CONTROLS (PREVENTING “GHOST” SCHEMES)
Payroll fraud is often the hardest to detect because it “looks” like a normal business expense.
- Segregation of Duties (SoD): The person who adds new employees to the system must not be the same person who approves the monthly pay run.
- Mandatory Vacation Policy: Require all financial and HR staff to take 5–10 consecutive days of leave annually. Fraud often surfaces when the perpetrator isn’t there to “hide” the trail.
- Ghost Employee Audit: Perform a quarterly “Headcount Reconciliation” where managers must physically verify every name on their payroll list exists.
- Self-Pay Blocking: Ensure the payroll software has a hard-coded block preventing administrators from editing their own salary or bank details.