The owner of a Miami, Fla.-based general contractor has been arrested for an alleged workers' compensation fraud scheme totaling nearly $737,000, according to Insurance Journal. The owner of Nuvo Contractor allegedly avoided paying workers' compensation insurance premiums over a six-month period.
The company allegedly conducted more than $5.5 million in business but reported an estimated $103,000 in anticipated payroll on their workers’ compensation insurance policy.
An investigation by the Department of Financial Services’ Bureau of Workers Compensation Fraud revealed that owner Norma Lopez Cedillo allegedly concealed payroll information to avoid paying higher workers’ compensation premiums. Based on financial records from two check cashing companies, it was discovered that Nuvo Contractor cashed nearly $4 million in payroll by numerous construction companies in the South Florida area. Cedillo reported payroll of only $22,311 and avoided paying more than $737,000 in workers’ compensation insurance premiums.
The scheme was discovered when their workers’ compensation insurance policy was issued and subsequently terminated roughly six months later for non-payment of premium.
Read More
