July 17, 2024
ORLANDO, Fla. (CBS12) — An Orlando woman pleaded guilty to conspiracy to commit wire fraud after investigators uncovered a nearly $8 million scheme.
The U.S. Department of Justice (DOJ) said on Wednesday, Wendy Cudemo-Gamez registered a construction company she owned with the state. The company claimed to provide construction services and labor to contractors. However, according to the plea agreement, Cudemo-Gamez also used the company to engage in a scheme to defraud worker's compensation insurance providers.
The plea agreement details that Cudemo-Gamez intentionally falsified information on insurance applications. She claimed her company had a limited payroll and a small number of employees working on construction sites, the DOJ said. Additionally, she made false claims through wire communications, assuring contractors that their workers had full worker's compensation coverage.
In reality, Cudemo-Gamez’s company received and cashed more than $7.8 million in checks from construction contractors, the DOJ stated. The payroll figures that Cudemo-Gamez reported far exceeded the actual limited payroll. As a consequence, these workers, employed by Cudemo-Gamez lacked proper worker's compensation coverage, the release stated. The scheme also resulted in lost revenue for insurance companies as they were unaware of the actual number of workers requiring coverage.
The DOJ stated that Cudemo-Gamez's fraudulent actions extended beyond insurance. Her company allegedly avoided ensuring workers were legally authorized to work in the United States and that required state and federal payroll taxes were paid. The contractors who utilized these workers' services were also able to evade these responsibilities.
While no sentencing date has been set, the DOJ says the 47-year-old faces a maximum penalty of 20 years in federal prison.
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