Florida Contractors Sentenced for Decade-Long Tax and Insurance Fraud Scheme

Story Summary
Orlando-based contractors Rene Maricio Escobar and Juana Nelida Escobar have been sentenced to at least two years in federal prison for orchestrating a decade-long payroll fraud scheme. Operating as Escobar Plastering between 2015 and 2024, the pair charged subcontractors a 7% fee to provide fraudulent insurance certificates, allowing them to bypass workers’ compensation premiums and tax obligations. The operation defrauded insurers of over $14 million and resulted in a court-ordered $37 million restitution to the IRS. This case highlights the systemic risks of underground labor economies, though it emerges amid reports of significant staffing turnover within the Southern District of Florida’s federal prosecutor office, which has seen its economic crimes unit capacity shrink by more than half since early 2025.





