John Diaz and Mercedes Avila-Diaz, Miami, Florida supermarket chain owners, were arrested Friday after they were accused of laundering money and defrauding workers' compensation, news sources report. Diaz, 45, and Avila-Diaz, 44, were booked into police custody on two counts of workers' compensation fraud. Diaz faces additional charges of organized scheme to defraud, money laundering, and several business violations. It is unclear whether either of the defendants qualified for bail bond. It is also not yet known whether the defendants have hired an attorney.
According to reports, Diaz founded his company, Diaz Supermarkets, in 2006. Diaz and Avila-Diaz also both owned and ran Diavila Enterprises Inc., which reports say is a tax preparation office that has been in operation since 2003. So far, neither company has released a statement regarding the allegations.
The charges resulted from a police operation dubbed "Operation Dirty Money," which targets streams of money moving from Mexico to the United States, a statement from the Florida Office of Insurance Regulation said. It is unclear whether Diaz and Avila-Diaz's alleged scheme had to do with the trafficking of Mexican money.
During their investigation, detectives with the Workers' Compensation Fraud Task Force reportedly learned that $35 million worth of fraudulent transactions took place at Diaz Supermarkets. Detectives conducted raids at four Diaz Supermarkets and one of the company's administrative offices and seized three vehicles and $640,000. In addition, police say Diavila Enterprises operated for a decade without offering workers' compensation coverage.
Workers' compensation coverage ensures that workers who are injured on the job are compensated for their situation. If Diaz and Avila-Diaz are found guilty of the charges, they face a combined total of 95 years behind bars. Operation Dirty Money appears to be ongoing; it is unclear whether there will be additional arrests.
In other news, Bernice Magana of Lake Worth was arrested this past week after she allegedly lied about her employment status in a scheme to receive public benefit funds, reports say. Magana, 27, was booked into the Palm Beach County Jail on charges of fraud. Her bail was set at $3,000. It is not yet known whether Magana has hired legal representation.