Investigators say shell companies concealed payroll, reduced insurance costs and processed millions of dollars in checks through unlicensed businesses.
WEST PALM BEACH, FL — Five members of an extended family have been charged in an alleged construction fraud operation that investigators say moved more than $95.6 million through shell companies while hiding payroll and avoiding workers’ compensation insurance costs.
The Palm Beach County case centers on a group of construction companies registered to relatives and associates at shared West Palm Beach addresses. Investigators allege the businesses obtained insurance policies by reporting payroll figures far below the amounts actually processed, then allowed uninsured subcontractors to use the companies’ insurance certificates to qualify for construction jobs.
The five defendants identified in court records are Marlen L. Suazo Gutierrez, Gustavo Lara Suazo, Blanca Cecilia Ramirez Farina, Alejandra Celeste Lagos Matute and Erick Eduardo Blandon. Each faces a charge of operating an organized scheme to defraud. Several also face workers’ compensation fraud and unauthorized money service business charges. The accusations have not been proven in court.
A 195-page arrest affidavit describes Suazo Gutierrez as the alleged leader of the enterprise. Investigators said the operation involved companies including JNJ Construction Services Inc., MDA Concrete Inc., JVC Interior Designs Inc., JYK Construction Concrete Inc., ACE Concrete & Pavers Inc., DMF Construction Services Inc. and EVB Construction Services Inc.
Many of the companies listed 901 S. Military Trail, Suite A7, as their business address, according to investigators. Detectives conducting surveillance in February 2025 reported seeing signage for a shipping business at the location rather than an active construction company. They said they did not observe construction vehicles entering or leaving the property.
Investigators allege the companies purchased workers’ compensation coverage using understated employee and payroll information. The resulting insurance certificates were then allegedly rented to subcontractors that lacked their own coverage. Those subcontractors could use the certificates to enter job sites, while payroll was routed through the shell companies and kept from insurers, according to the affidavit.
JNJ Construction Services reported about $1.71 million in annual payroll to its workers’ compensation carrier, but investigators said approximately $4.37 million in payroll checks were cashed during the policy period. The insurer calculated that the company avoided nearly $168,000 in premiums, according to the affidavit.
MDA Concrete reported about $1.21 million in payroll while processing roughly $6.57 million in payroll checks during the same policy period, investigators said. The insurer calculated more than $411,000 in unpaid premiums tied to that difference.
The investigation also examined millions of dollars in payroll checks allegedly cashed through businesses that were not registered as money service providers. The affidavit states that JNJ Construction Services cashed more than $15.5 million in checks, MDA Concrete handled more than $11.1 million and JVC Interior Designs processed more than $1 million.
Authorities allege a separate West Palm Beach storefront, MLS Paralegal Services at 2601 S. Military Trail, served as a management office and cash-processing center for the operation. Undercover investigators watched people deliver bags and backpacks to the office and tracked financial transactions involving the related construction companies, according to the affidavit.
Investigators said the broader network processed more than $95.6 million during the period reviewed. Authorities separately described the alleged organized fraud enterprise as involving about $12.5 million. The figures appear to measure different parts of the case, including the total value of transactions and the amount attributed to the alleged criminal scheme.
Court records show Suazo Gutierrez and Ramirez Farina appeared before a judge July 10. Ramirez Farina was ordered to have no contact with co-defendants. Lagos Matute and Blandon were released on bond July 11, and Lagos Matute surrendered her passport as a condition of release. Gustavo Lara Suazo was charged through a separate arrest warrant and probable cause affidavit.
State officials are continuing to review insurance and financial records connected to the companies. Investigators have said the inquiry remains open, and no trial dates or final court outcomes had been announced.
Author note: Last updated July 14, 2026.