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In Oakland Park (Broward County), owners of West Dixie Enterprises were arrested stemming from an investigation that discovered nearly $10,000 in workers’ compensation premiums had been withheld from the Transportation Builders’ Association Self Insurance Fund. Investigators said over $300,000 in payroll had been hidden from insurance company auditors and more than $32,000 was paid out of a personal checking account.
The owner of a large roofing company in Crystal River (Citrus County) was arrested recently for allegedly depriving Liberty Mutual Insurance Company of over $800,000 in workers’ compensation premiums. The Division of Insurance Fraud investigation showed $1.5 million in payroll had been disguised as payment to two subcontractors who did not exist.
Both of these situations are examples of the burgeoning problem of workers’ compensation premium fraud in Florida and elsewhere. By misrepresenting payroll figures or job descriptions, employers underpay the amounts rightfully due for their coverage.
To combat fraud cases like these in the future, state Treasurer and Insurance Commissioner Bill Nelson has announced the creation of a new fraud task force. The new group, named the 440 Strike Force after the statute detailing workers’ compensation guidelines, is based in the Insurance Fraud Division’s West Palm Beach office.
The new strike force will be directed by Lt. Jeff Korte, a 20year law enforcement veteran who has worked in the workers’ compensation fraud bureau for the past six years. He’ll direct four investigators and a crime intelligence analyst in premium fraud cases statewide.
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