The long arm of the law reached across 43 states and state and federal investigative offices to convict three defendants in a workers' compensation insurance scheme. The defendants now face a combined 480 years in prison, more than $17 million in fines, and more than $78 million in forfeitures.
The six-week trial, which concluded in February, was the result of joint investigations by the FBI and the Florida Department of Financial Services, Fraud Division. Assistant United States Attorney Mark B. Devereaux prosecuted the case.
Trial evidence established that the three defendants, along with others, conspired between January 2001 and April 2004 to defraud client companies of PEOs into paying workers' compensation insurance premiums for fraudulent, illegal, and sham workers' compensation insurance coverage. The conspirators used corporate names of purported insurance companies and offshore foreign corporations in order to provide an air of legitimacy to their fraudulent scheme.
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