Six arrests in Florida have revealed a complex workers’ comp insurance fraud scheme in the central part of the state. An investigation led by the Florida Department of Financial Services’ Division of Insurance Fraud revealed a large-scale premium fraud scheme in which these six individuals created multiple shell corporations in order to systematically conceal payroll amounts for the purposes of obtaining low-cost workers’ compensation policies. Investigators believe that beginning in September 2012, the following Central Florida businesses were opened and operated as shell companies: Alfa Construction, Burgos Construction, Ginel Construction, Rejevaz Services Inc., and PHH Construction. Payroll amounts were concealed through the use of check cashing stores, and after securing certificates of insurance for the inadequate policies, organizers would loan out the certificates to work crews for a fee.
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