The Florida Department of Financial Services Divisions of Workers’ Compensation and Insurance Fraud have released a joint report summarizing their efforts and activities in combating workers’ compensation fraud for the period of July 1, 2012 through June 30, 2013.
Highlights of the report include:
- Workers’ compensation premium fraud continues to be a high priority. Cases involve construction industry contractors using shell companies and check cashing stores to launder money for cash pay to workers in order to avoid paying proper premiums.
- The report’s authors write: “This scheme allows these uninsured contractors an unfair advantage when competing with legitimate companies who abide by state statute and obtain and maintain workers’ compensation coverage on all their employees.”
- The state legislature funded two additional dedicated workers’ compensation fraud prosecutors.
- The agencies have engaged in cooperative efforts with state and local law enforcement and with industry-related organizations to improve employer compliance.
- 475 workers’ compensation fraud cases presented for prosecution: a 35% increase over the previous fiscal year.
- 259 arrests for workers’ compensation fraud: a 25% increase from the previous year.
- 2,444 stop work orders were issued for failing to have workers’ compensation coverage and for premium fraud.
- $26.4 million in penalties for not having coverage and for premium fraud.
- 9,795 additional employees gained coverage as a result of investigations generating $5.7 million in additional premium.
- The state maintains compliance data bases including: coverage verification, exemptions, stop work orders and notification of construction contractor policy expirations.
You can read the entire 23-page report by opening the attachment below.