The owner of JACM Construction Corp. was arrested recently on charges of workers’ compensation premium fraud. The owner allegedly operated a shell company with the sole intent of circumventing Florida’s workers’ compensation laws.
On April 25, 2017, the JACM owner obtained a workers’ compensation policy for his company providing that the company operated with an estimated annual payroll of $112,000.00 for work classified under wall installation and carpentry. The Department of Financial Services Bureau of Workers’ Comp. Fraud and the Broward Sherriff’s Office was conducting surveillance at a Vero Beach money service business when a suspicious transaction involving the owner of JACM was flagged. The owner was cashing 27 business to business checks totaling $127,025.37, which surpassed the company’s estimated yearly payroll in a single transaction.
Further investigation revealed that over a year and a half, the owner cashed more than $8.4 million in payroll at various money services businesses throughout Florida. Had he accurately provided the yearly payroll for his company, the owner’s insurance premium would have been $424,314.00. The owner was arrested August 11, 2017 in Palm Beach County by the Bureau of Workers’ Comp Fraud in conjunction with the Broward Sheriff’s Office Money Laundering Task Force and Workers’ Comp. Fraud Task Force. He has been charged with workers’ compensation premium fraud, which is a first-degree felony, and is being held with a $100,000.00 bond.