Fraud of the Week

Workers Comp fraud – Florida

Amount – $19 million+

A contractor has been sentenced to 21 months in federal prison for conspiracy to commit wire fraud related to workers compensation. The contractor made fraudulent representations to insurance companies about the number of employees he had and representations to contractors that his employees were covered by workers compensation insurance when they weren't. He received and cashed multiple checks for more than $19 million from various contractors to pay the employees. The contractor was caught when his insurer noticed his payroll exceeded his claimed payroll by a significant amount.