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Naples Business Owner Arrested for $700,000 Workers’ Compensation Fraud Scheme

Naples Business Owner Arrested for $700,000 Workers’ Compensation Fraud Scheme

  • dgarcia
  • 08 June 2016

Naples Business Owner Arrested for $700,000 Workers’ Compensation Fraud Scheme

Press Release, Florida Department of Financial Services

5-20-16

Florida Chief Financial Officer Jeff Atwater today announced the recent arrest of Raimundo Hernandez-Argueta, owner of Naples construction company Complete Framing Professionals (CFP). Following a joint investigation by the Department of Financial Services’ (DFS) Division of Insurance Fraud and Division of Workers’ Compensation, Hernandez was arrested on fraud charges for allegedly misrepresenting information regarding CFP’s employee operations and payroll when applying for a workers’ compensation policy. By doing so, Hernandez avoided at least $700,000 in workers’ compensation premium payments.

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Investigators later discovered that Hernandez obtained a policy through Florida United Business Association providing coverage for four employees, each with an annual wage of $50,000. Hernandez paid $26,910 for this one-year policy. However, job site inspections documented 108 employees during that time frame and more than $5.5 million in total earnings, grossly lower than what was reported to the company’s insurance carrier.

As a result of his misrepresentations, Hernandez was able to illegally avoid paying more than $700,000 in workers’ compensation premium dues.

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