7 arrested in $40 million workers’ compensation fraud scheme

Florida Chief Financial Officer Jimmy Patronis announced Monday that seven people had been arrested in a workers’ compensation fraud bust.

Homeland Security personnel and members of the Florida Attorney General’s Office worked with Florida’s Division of Investigative and Forensic Services on a joint investigation that included help from the Tampa Bay region.

Together, Florida investigators say they discovered more than $40 million in payroll had been concealed and not reported to the worker’s compensation insurance provider.

“Between August of 2018 and October 2021, the individuals used shell companies and money laundering efforts to avoid paying over $7 million in insurance premiums,” Patronis’ office wrote in a news release.

HSI Tampa Assistant Special Agent in Charge Michael Cochran said law enforcement teamwork in Tampa and Orlando helped lead to the arrests.

Few details were immediately released. But, investigators say they seized $218,000 in cash.

“These defendants used elaborate money laundering tactics and shell corporations to conceal payroll information and avoid millions of dollars in insurance premiums,” Attorney General Ashley Moody wrote in a statement. “They thought they were getting away with their devious scheme, but state and federal law enforcement were already investigating their crimes.”

If convicted, the seven people arrested could face up to 30 years in prison.

“This elaborate scheme illustrates how far criminals are willing to go to avoid paying workers’ compensation premiums,” Patronis said. “Workers’ Comp fraud creates a vulnerable situation for employees and leaves honest Florida businesses to foot the bill for higher insurance rates.”