Construction Company Owner Could Face Up to 60 Years in Prison for Workers’ Compensation Fraud – A Disturbing Legal Situation
Introduction:
A Florida construction company owner has been arrested for workers’ compensation fraud after hiding nearly $6 million in payroll to avoid paying higher insurance premiums. Miguel Porras, the owner of Thiago’s Enterprise Construction Inc., was charged with first-degree felony Workers’ Compensation Premium Fraud and Grand Theft. If convicted, he could face up to 60 years in prison. An investigation by Florida’s Department of Financial Services revealed that Porras deliberately concealed payroll to evade higher workers’ compensation insurance premiums. During the policy period, he collected $5,995,518 in labor costs from contractors, which would have resulted in an additional $357,129 in premium charges if properly reported. This case highlights the seriousness of workers’ compensation fraud and the consequences that come with it.
Full Article: Construction Company Owner Could Face Up to 60 Years in Prison for Workers’ Compensation Fraud – A Disturbing Legal Situation
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Florida Construction Company Owner Arrested for Workers’ Compensation Fraud
A Florida construction company owner has been arrested for workers’ compensation fraud after allegedly concealing nearly $6 million in payroll to avoid paying higher insurance premiums.
Charges and Potential Consequences
Miguel Porras, owner of Thiago’s Enterprise Construction Inc., was charged with first-degree felony Workers’ Compensation Premium Fraud and Grand Theft on August 22, 2023. If convicted, Porras could face up to 60 years in prison.
Investigation and Insurance Premium Avoidance
The Florida Department of Financial Services conducted an investigation of Thiago’s Enterprise Construction and discovered that Porras actively concealed payroll in order to avoid higher workers’ compensation insurance premiums.
In 2021, Porras applied for workers’ compensation coverage with Southeast Personnel Leasing Inc. and reported a payroll of $56,104 with an estimated annual premium of $4,400. However, it was later revealed that Porras failed to notify the insurance company of significant payroll changes. Investigators determined that during the policy period, Porras actually collected $5,995,518 in labor costs from contractors for his company.
If the payroll had been reported correctly, Thiago’s Enterprise Construction would have been assessed an additional $357,129 in premium charges.
Summary: Construction Company Owner Could Face Up to 60 Years in Prison for Workers’ Compensation Fraud – A Disturbing Legal Situation
A Florida construction company owner, Miguel Porras, was arrested for workers’ compensation fraud after hiding almost $6 million in payroll to avoid higher insurance premiums. Porras, the owner of Thiago’s Enterprise Construction Inc., was charged with first-degree felony Workers’ Compensation Premium Fraud and Grand Theft. If convicted, he could face up to 60 years in prison. An investigation by Florida’s Department of Financial Services revealed that Porras concealed payroll to avoid higher workers’ compensation insurance premiums. If reported correctly, his company would have been charged an additional $357,129 in premium fees.
Frequently Asked Questions:
Frequently Asked Questions – Construction Company Owner Facing up to 60 Years in Prison for Workers’ Compensation Fraud
Q: What are the charges against the construction company owner?
A: The construction company owner is facing charges of workers’ compensation fraud, which is a serious criminal offense. The owner is accused of intentionally providing false information and manipulating records to avoid paying proper workers’ compensation insurance premiums for employees.
Q: How long could the construction company owner be sentenced to prison?
A: The construction company owner could potentially face up to 60 years in prison if found guilty of the workers’ compensation fraud charges. The sentence is subject to the judge’s discretion and will depend on the severity of the offense and any previous criminal history.
Q: What is workers’ compensation fraud?
A: Workers’ compensation fraud refers to the act of intentionally deceiving the workers’ compensation insurance system for personal gain. It typically involves submitting false information, hiding payroll records, misclassifying employees, or underreporting the number of workers to avoid paying premiums or receiving benefits. It is considered illegal and can result in significant legal consequences.
Q: What is the impact of workers’ compensation fraud on employees?
A: Workers’ compensation fraud can have severe consequences for employees. When employers evade paying proper premiums, employees may not receive the required medical treatment, wage replacement, or necessary support in case of work-related injuries. It puts the financial burden on the employees and jeopardizes their rights to fair compensation and adequate healthcare coverage.
Q: What are the legal consequences of workers’ compensation fraud?
A: The legal consequences of workers’ compensation fraud can vary depending on the jurisdiction and severity of the offense. In this case, the construction company owner could face up to 60 years in prison if convicted. Additionally, fines, restitution of unpaid premiums, damage to reputation, and the loss of business licenses or permits can also be imposed.
Q: How can workers’ compensation fraud be prevented?
A: To prevent workers’ compensation fraud, construction company owners should uphold ethical business practices and comply with state laws and regulations. It is crucial to accurately report payroll, maintain proper documentation, and ensure that all employees are classified correctly. Regular audits and internal controls can also help identify any potential fraudulent activities and prevent their occurrence.
Q: What should employees do if they suspect workers’ compensation fraud?
A: If employees suspect workers’ compensation fraud within their company, they should report their concerns to the appropriate authorities, such as the state labor department or workers’ compensation board. Whistleblower protections may be in place to safeguard employees who report fraud. It is important to maintain any evidence or documentation that supports the suspicions, which can assist in investigations.
