After a years-long investigation involving state and local law enforcement teams, Florida authorities have charged seven people in a $100 million workers’ compensation payroll scheme that paid workers in cash and defrauded insurers of premiums.
“This criminal enterprise systematically exploited Florida’s workers’ compensation system for personal gain,” Florida Attorney General James Uthmeier said in a statement in August. “They undercut legitimate contractors, defrauded insurance companies, and operated an illegal money-service operation that moved nearly $100 million.”
The defendants allegedly created a number of shell companies that obtained minimal workers’ compensation insurance coverage by greatly underreporting payroll. They then “rented” their certificates of insurance to subcontractors for a fee. At the same…
These frauds exploit emotional vulnerability and trust rather than technical weaknesses.
- Romance Scams: Scammers build long-term online relationships with victims, eventually fabricating a “crisis” (medical emergency, legal trouble, or travel costs) that requires the victim to send money.
- Pig Butchering: A hybrid scam where the criminal builds a romantic or platonic relationship to eventually “tutor” the victim in a fraudulent cryptocurrency investment.