CFO Patronis Announces Arrest in $350K Miami Workers’ Compensation Fraud Scheme
MyFloridaCFO.com, August 23, 2023
MIAMI, Fla. – Today, Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Miguel Porras, owner of Thiago’s Enterprise Construction Inc., for Workers’ Compensation Premium Fraud of more than $350,000 after actively concealing payroll to avoid paying a higher workers’ compensation premium.
CFO Jimmy Patronis said, “Fraud is not only costly for the victims, but it drives up insurance rates and creates uncertainty in the marketplace. As CFO, I have worked hand-in-hand with our fraud teams to take down bad actors who want to take advantage of the system and scam Floridians from basic protections in the workplace. Kudos to our Worker’s Compensation Fraud team for putting this fraudster behind bars and keeping Floridians safe.”
An investigation was conducted by the Department of Financial Services, Division of Investigative and Forensic Services, Bureau of Workers' Compensation Fraud, which revealed that Mr. Miguel Porras, owner of Thiago's Enterprise Construction Inc., actively concealed his payroll to avoid paying a higher workers' compensation premium. In 2021, Porras applied for workers' compensation coverage with Southeast Personnel Leasing Inc. with an estimated annual remuneration of $56,104. Based on the provided information, a traditional policy was issued with an estimated annual premium of $4,400.00.
The investigation revealed that Porras, on behalf of Thiago's Enterprise Construction Inc., failed to notify his insurance company of significant payroll changes. Detectives were able to determine during the policy period, Porras actually collected over $5,995,518.99 in labor costs paid from contractors to his company. According to Southeast Personnel Leasing Inc., had the additional payroll been reported Thiago's Enterprise Construction Inc. would have been assessed an additional $357,129.00 in premium charges.
On August 22, 2023, Porras was arrested and booked in the Miami- Dade County Jail where he was charged with Workers' Compensation Premium Fraud and Grand Theft. Both are first degree felonies and, if convicted, he faces up to 60 years in prison.