Florida's Chief Financial Officer, Jimmy Patronis, announced the arrests of Jose Esmelin Martinez and Uzziel Isaias Jaramillo, saying the pair was trying to "skew the free market system" and maximize profits at the expense of worker safety.
Investigators said Martinez and Jaramillo reported an erroneous annual estimated payroll of $60,000 on an application for workers' compensation. Based on that figure, the premium was set at $14,051. But investigators found $288, 263 in cashed payroll checks during the policy period at a number of money services businesses in South Florida. The company was later found to have had a payroll of at least $1.2 million.
If the company had used the more accurate payroll number, the premium would have been $278,209.
Both men have been charged with workers' compensation fraud, grand theft, and organized scheme to defraud. If convicted, they could face as much as 60 years in prison.
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