HOMESTEAD, Fla. - Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Angel Santos Tzunun for worker’s compensation fraud for allegedly concealing payroll to avoid paying a higher worker’s compensation premium. Fraud detectives determined that Tzunun concealed more than $2 million in labor costs from contractors and avoided more than $100,000 in workers’ compensation premiums on two separate insurance policies.
CFO Jimmy Patronis said, “As your CFO, I’ve made it my mission to fight fraud and ensure the crooks who choose to game the system are brought to justice quickly. Most Florida businesses play by the rules but when you intentionally defraud insurance companies it drives up costs for every Florida business and puts employees at risk. I want to thank my dedicated fraud detectives for their hard work in this case and holding the alleged perpetrators accountable for their actions. If you suspect fraud in your community, report it immediately at FraudFreeFlorida.com.”
An investigation was conducted by the Department of Financial Services, Division of Investigative & Forensic Services, Bureau of Workers' Compensation Fraud, which revealed that the owner of Angel M.E. Construction Corp, Mr. Angel S. Tzunun actively concealed payroll to avoid paying a higher workers' compensation premium. In 2021, Tzunun renewed his contract with Southeast Personnel Leasing, with a reported annual payroll of $4,200.00. Based on the reported payroll, a premium fee of $665 was paid for period of January 1, 2021, to March 29, 2021. Shortly after, Tzunun applied for coverage with Florida Citrus Business and Industries Fund and provide an estimated payroll of $166,400. Based on the provided information, a policy was issued with an effective date of April 5, 2021, to April 5, 2022, with a premium of $6,356.
The investigation revealed that Tzunun on behalf of Angel M.E. Construction Corp, failed to notify his insurance companies of significant payroll changes. Detectives were able to determine during the policy period January 2021 to March 2021, Tzunun collected more than $438,760 for labor costs paid from contractors to his company. Furthermore, on the second policy period, Tzunun collected more than $1,632,499.12 for labor costs paid from contractors.
According to Southeast Personnel Leasing, had the additional payroll been reported, Angel M.E. Construction Corp would have been assessed an additional $30,179 in premium charges. Additionally, according to Florida Citrus Business and Industries Fund, had the additional payroll been reported, Angel M.E. Construction Corp would have been assessed an additional $81,013 in premium charges.
On January, 23, 2024, Tzunun was arrested and booked in the Miami-Dade County Jail where he was charged with Workers' Compensation Premium Fraud and Grand Theft. All are first degree felonies. If convicted on all charges, Tzunun faces up to 90 years in jail.
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About CFO Jimmy Patronis
Chief Financial Officer and State Fire Marshal Jimmy Patronis is a statewide elected official and a member of Florida’s Cabinet who oversees the Department of Financial Services. CFO Patronis works each day to fight insurance fraud, support Florida’s firefighters, and ensure the state’s finances are stable to support economic growth in the state. Follow the activities of the Department on Facebook (FLDFS) and Twitter (@FLDFS).
