An Orlando woman has been sentenced to over two years in federal prison for her part in a construction-related wire fraud conspiracy, according to an announcement from the U.S. Department of Justice. Wendy Cudemo, 48, received a 27-month sentence from U.S. District Judge William F. Jung and was ordered to forfeit nearly $788,000 in criminally obtained proceeds and a piece of real property in Palmetto, Florida. Cudemo had previously entered a guilty plea on July 16, acknowledging her role in the fraudulent scheme that impacted several construction contractors and numerous workers.
Details from the case reveal that Cudemo managed a construction company that supplied services and labor to construction contractors. In a press release by the U.S. Attorney’s Office, it was outlined that Cudemo’s company needed to maintain proper worker’s compensation insurance coverage to comply with Florida laws. However, the company falsely claimed a limited payroll with fewer employees than were providing labor on job sites, often undocumented aliens who, under the direction of the contractors, received payment through payroll checks cashed by Cudemo.
The insurance application process was exploited by Cudemo's misrepresentation of her company’s payroll size and worker count, which led to these workers performing their duties without adequate coverage. The checks from construction contractors for purported employees of Cudemo's company surpassed $7.8 million, a figure vastly more than reported for insurance purposes. This discrepancy led to insurers losing out on premiums that would have been charged had they known the true number of workers at risk. Moreover, both Cudemo’s company and the contractors employing the labor distanced themselves from responsibilities for ensuring the employment eligibility of workers and managing state and federal payroll taxes.
Homeland Security Investigations and Florida's Department of Financial Services led this investigation as part of a larger effort to expose the misuse of shell companies and fake employees in construction. Assistant U.S. Attorney Jay L. Hoffer prosecuted Cudemo, who had already pled guilty.
