November 4, 2024   Tampa, Florida – U.S. District Judge William F. Jung has sentenced Wendy Cudemo (48, Orlando) to 27 months in federal prison for conspiracy to commit wire fraud. The Court also entered an order of forfeiture in the amount of $787,911.00, the proceeds of the wire fraud conspiracy and ordered the forfeiture to the United States of real property located in Palmetto, Florida. Cudemo pled guilty on July 16, 2024.   According to court documents, Cudemo owned and managed a construction company which purported to supply construction services and labor for construction contractors and subcontractors. In order to comply with Florida law, Cudemo’s company was required to secure and maintain adequate worker’s compensation insurance coverage. Her company had agreements with contractors and subcontractors to use workers purported to be Cudemo’s employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Cudemo or others would then regularly receive “payroll checks” from contractors that were cashed at various financial institutions to pay Cudemo’s purported “employees” and other related expenses.   During the period charged, Cudemo falsely and fraudulently represented in insurance applications that her company had a very limited payroll and a very limited number of employees who worked on construction jobsites. Cudemo also falsely and fraudulently sent wire communications to numerous contractors representing that her company’s employees had full worker’s compensation coverage. In reality, Cudemo’s company received and cashed more than $7,800,000 in checks from various construction contractors for these purported Cudemo “employees.” These payroll figures far exceeded the very limited payroll figures that Cudemo had reported to her worker’s compensation insurance company. As a result, these employees, in reality the employees of other entities, performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were thus being manipulated to cover.   As a result of these misrepresentations, Cudemo’s company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties as well.   This case was investigated by Homeland Security Investigations and the State of Florida Department of Financial Services. It is part of a lengthy investigation by those agencies into the use of shell companies and “ghost” employees in the construction industry. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.

November 4, 2024   Washington — Employers can help prevent the spread of common respiratory viruses indoors by ensuring proper workplace ventilation and limiting the use of small, shared spaces, the Environmental Protection Agency says.   Updated guidance from EPA states that respiratory viruses can spread more easily indoors because of people’s proximity to one another as well as the possible buildup of “viral concentration.” Through recommendations intended for workplaces, schools and homes, the agency outlines multiple strategies to help control the spread via a multilayered approach.   Read more

November 1, 2024   London — Around half of workers who’ve been harmed on the job in the past two years didn’t report it, according to a new report from Lloyd’s Register Foundation.   For the independent global safety charity’s World Risk Poll, researchers from management consulting and research company Gallup conducted nearly 147,000 interviews in 142 countries and territories, asking workers about their experiences with and perceptions of harm on the job.   Almost 1 out of 5 of the workers (18%) – which equates to roughly 667 million workers worldwide – have endured serious harm on the job in the past two years. Notably, 49% of such cases go unreported.   Why the reluctance? The report cites factors including fear of reprisal, lack of management responsiveness, obstacles in recordkeeping and belief that pain “is an ordinary consequence of some jobs.”   Additionally, 62% of the workers said they’d never received safety and health training, including 80% of those employed in agriculture.   “The more recently people have had training, the more likely they are to report workplace harm if they experience it,” the report states.   In a press release, Martin Cottam, chair of ISO Technical Committee 283 on Occupational Health and Safety Management, calls the findings in that portion of the report “sobering reading for all those working to encourage better occupational health and safety performance, as they highlight the scale of the ongoing challenge.”   He added: “Amid all the discussion about the plethora of tools and methods available to reduce harm, it is shocking to be confronted with the fact that a majority of the global workforce has never received any occupational safety and health training.”   In a recent blog post on the report, Sarah Ischer – environmental, health and safety manager at the National Safety Council – encourages open communication and the implementation of comprehensive training programs in workplaces.   “By doing so,” Ischer writes, “organizations can not only protect their employees but also empower them to thrive in a safe and productive environment.   “In the end, safety is not just about minimizing risks; it’s about fostering a workplace where everyone feels secure and engaged – ultimately driving success for all.”

October 28, 2024   More than 100 people were arrested late last week in storm-ravaged Pinellas County, Florida, charged with looting homes and working as unlicensed contractors, two weeks after Hurricane Milton forced many residents to evacuate.   Pinellas County Sheriff Bob Gualtieri said that deputies on patrol arrested 45 people on Madeira Beach, near St. Petersburg, and charged them with burglary, loitering, grand theft, armed robbery and vandalism, according to local news reports and the sheriff’s office. Many of the homes were vacant after homeowners left the area before Miltion hit Oct. 9.   Most of those arrested were not from the area and many were not U.S. citizens and were believed to be illegal immigrants, the sheriff said at a news conference.   Detectives in the same area also arrested more than 60 people in a three-day undercover sting operation that targeted unlicensed construction work. The suspects held themselves out to be licensed contractors, offering to do roofing, plumbing, electrical and other work, Gualtieri said, according to the Tampa Bay Times and WUSF public radio station.   It was unclear if some of the alleged perpetrators were charged with both sets of offenses, or if repair work had been completed on the properties, or if homeowners had used insurance claims proceeds to pay the workers.   State officials for weeks have warned Florida residents affected by Hurricanes Helene and Milton to beware of looters and unlicensed repair workers in the wake of the storm damage. And Gualtieri said similar reports of looting and unlicensed contracting had come from other barrier islands in the area.   “Our effort to protect the community has not stopped with these hurricanes’ direct impact,” the sheriff said in a statement posted online. “We are now focused on protecting our residents and our businesses who are desperate to rebuild and get on with their lives.”

October 24, 2024 Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of two indictments charging Eduardo Anibal Escobar (44), Carlos Alberto Rodriguez (45), Adelmy Tejada (56), Rene Mauricio Escobar (53), and Juana Nelida Escobar (45), all residents of Orlando, with conspiracy to commit wire fraud and conspiracy to commit tax fraud.   Each wire fraud count carries a maximum penalty of 20 years in federal prison and each tax fraud count carries a maximum penalty of 5 years in prison. The indictments also notify the defendants that the United States intends to seek forfeiture of a total of at least $19 million as well as five residential properties located in Orlando, which are proceeds of the alleged wire fraud offenses.   According to the indictment, the defendants established companies that purported to supply labor for construction contractors. Florida law requires any business that engages in construction work to secure and maintain workers’ compensation insurance. The defendants applied for workers’ compensation insurance policies to cover a few employees and a minimal payroll.   The defendants then entered into agreements with construction work crews, often consisting of undocumented aliens, pursuant to which the defendants submitted paperwork to construction contractors to obtain work for the work crews, falsely representing that the workers were the companies’ employees. The workers then performed construction work under the supervision and direction of the contractors.   The contractors wrote payroll checks to the defendants’ companies for this work and provided the checks to work crew leaders. The checks were deposited into bank accounts in the name of the defendants’ companies and the defendants withdrew cash, and sometimes wrote checks for the workers’ pay and provided the cash and checks to the work crew leaders. However, before turning over the payroll, the defendants deducted a 6% to 8% fee for their services.   The funneling of payroll from the contractors to the work crews in this way allowed the contractors and the work crews to disclaim responsibility for ensuring that required payroll taxes were paid, that adequate workers’ compensation insurance was provided, and that the workers were legally authorized to work in the United States. During the period of the alleged conspiracy, the defendants deposited more than 46,000 payroll checks totaling more than $292 million, of which the defendants kept at least $19 million in fees. No one—neither the contractors nor the work crews nor the defendants or their companies—remitted payroll taxes, such as Social Security and Medicare taxes and federal income tax, to the IRS. According to the IRS, the unpaid taxes on the payroll total at least $52 million.   The defendants also cheated the workers’ compensation insurance companies out of premiums. If the insurance companies had known that the policies were going to be used for more than $292 million in payroll, they would have charged additional premiums totaling at least $28 million.   An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.   This case was investigated by Homeland Security Investigations, the Internal Revenue Service –Criminal Investigation, and the Florida Department of Financial Services. It is part of a continuing investigation by those agencies on the use of shell companies and “ghost” employees in the construction industry. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier. The asset forfeiture is being handled by Assistant United States Attorney Jennifer M. Harrington.

October 23, 2024   On October 15, 2024, the Solicitor of Labor of the U.S. Department of Labor (DOL) published a “Special Enforcement Report” declaring the DOL’s intention to oppose and deter seven contractual provisions that the DOL describes as “coercive.”   For those unfamiliar with the position, the Solicitor of Labor (SOL) serves as legal advisor to the DOL and is authorized to sue employers for violations of laws enforced by the DOL.   The contract provisions the SOL is targeting are as follows: Provisions requiring workers to waive rights under wage and hour laws Misclassification of workers as independent contractors Indemnification provisions that shift liability to workers “Loser pays” provisions “Stay-or-pay” provisions Confidentiality, non-disclosure, and non-disparagement provisions Requirements that workers report safety concerns to their employer before contacting a government agency   Here is the crux of the provisions the SOL takes issue with and why: Read more

October 21, 2024   Pointing to issues such as heavy demand for repairs after hurricanes and an increase in young, inexperienced workers, a roofing-contractors industry group last week argued against lowering workers’ compensation insurance rates for roofers.   Leaders of the Florida Roofing and Sheet Metal Contractors Association urged state regulators to freeze the roofing industry’s rates, rather than approve a decrease that would take effect in 2025.   The arguments came during a hearing held by the Florida Office of Insurance Regulation to consider a proposal to reduce rates for employers by an overall average of 1 percent.   While it might seem counterintuitive for an industry group to oppose reducing rates, leaders of the roofing contractors association — which has a self-insurance fund — expressed concerns about stability and a potential increase in future claims.   Read more

October 9, 2024   Gallagher report reveals the growing risks heat waves and air pollution pose to the health and safety of outdoor workers.   An estimated 1.6 billion people, over a quarter of the global population, worked outdoors in 2022. However, the increasing frequency and intensity of heat waves, coupled with deteriorating air quality, are making outdoor work increasingly perilous in many parts of the world, according to a recent Gallagher Spotlight report.   Heat waves are becoming more common, intense, and prolonged. In the U.S., their frequency has increased from an average of two heat waves per year during the 1960s to six per year during the 2010s and 2020s, the report noted.   Additionally, heat is the deadliest weather-related hazard in the U.S., causing more fatalities annually than hurricanes, floods, or tornadoes. From 1992 to 2022, a total of 986 workers across all industry sectors in the U.S. died from exposure to heat, according to data from the Environmental Protection Agency.   Some estimates claim as many as 2,000 worker fatalities in the U.S. each year are linked to heat, with up to 170,000 workers injured in heat stress-related accidents, according to the report.   In addition to rising temperatures, the growing frequency of heat waves feeds into the degradation of air quality as wildfires increase in both frequency and intensity, causing smoke particulates and respiratory issues.   “I am concerned about the impact of the recent wildfires on people’s health. I believe there must have been a significant number of people affected by the smoke from wildfires, not only in Canada but also in the U.S.,” said Steve Bowen, chief science officer at Gallagher Re. “The smoke from large fires can travel thousands of miles and affect people globally. It’s even been reported that soot from the Canadian fires reached parts of Europe.”   Read more