On Nov. 3, Florida's Chief Financial officer Jimmy Patronis and the Department of Financial Services (DFS) announced the recent arrest of Carlos Contreras, owner of DJC Builders & Construction.

According to DFS, Contreras allegedly obtained a fraudulent workers' compensation policy by underreporting the company's number of employees, annual payroll amount and scope of work. The allegedly false information let to Contreras avoiding payments of more than $1 million in premiums for an adequate workers' comp policy.

"When companies lie to obtain cheaper, inadequate workers' compensation policies, staff or property owners are left vulnerable to covering sky-high medical costs if a worker gets injured on the job, and free markets are disrupted by scammers who can underbid their legitimate competitors," Patronis said. "It's a lose-lose situation for Florida and I won't stand for it."

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Rosalie Donlon

Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].