Florida Division of Insurance Fraud Announces Two Arrests in Miami Workers’ Compensation Fraud Scam
MIAMI, Fla. – June 1, 2015 – (RealEstateRama) — The Florida Department of Financial Services’ Division of Insurance Fraud (DIF) today announced the arrest of Juan C. Garcia, owner of Construction Forever LLC, for his involvement in a workers’ compensation insurance fraud scheme. The investigation conducted by DIF revealed that Garcia provided false and misleading information on his application for workers’ compensation insurance with the intent to lower premium costs.
By falsely deflating his company’s reported payroll and claiming less than $150,000 in payroll costs, Garcia secured a workers’ compensation policy that did not adequately cover the needs of his construction company. Investigative efforts later revealed an elaborate scheme that concealed an accurate payroll of more than $2 million through the use of check cashing stores.
Garcia’s actions caused a loss in excess of $350,000 to the Traveler’s Insurance Company and the Florida Workers’ Compensation Joint Underwriting Association. In addition to this monetary loss, Garcia’s actions failed his employees by rendering them vulnerable to potential high-dollar medical and lost wage costs should they become injured while on the job.
He will be charged with one first-degree count of the following: Worker’s Compensation Fraud, Grand Theft, and Organized Scheme to Defraud. His accomplice, Amaldo Pena, faces similar 2nd degree charges.
The defendants were arrested and booked into Miami-Dade County Jail, and their cases will be prosecuted by the office of Miami-Dade State Attorney Katherine Fernandez Rundle.
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Chief Financial Officer Jeff Atwater, a statewide elected official, oversees the Department of Financial Services. CFO Atwater’s priorities include fighting financial fraud, abuse and waste in government, reducing government spending and regulatory burdens that chase away businesses, and providing transparency and accountability in spending. Follow the activities of the Department on Facebook (FLDFS) and Twitter (@FLDFS).
Contact: Ashley Carr