DIF Forms Task Force with the Broward

DIF Forms Task Force with the Broward
Sheriff's Office to focus on MSB 's
By Geoff Branch
　
You may have noticed a theme in this issue regarding the Department of Financial Services' focus on combating the rampant workers' com­ pensation premium fraud being facilitated by some Money Service Businesses across the state. This crime has been identified as the largest threat to the workers' compensation market in Florida, as it results in claims for which premium never was, and never will be, collected.
To that end, in early August the Division entered into a Memorandum of Understanding with the Broward Sheriff's Office to assign to the Division a full-time detective to be paired with a DIF detective, un­ der the supervision of a DIF Supervisor, to focus on specific Money Service Businesses in Broward County that have been identified as participating in these types of schemes. Investigations are already under way and will soon generate significant enforcement activities.
Utilizing the technical, legal, and investigative resources of a large law enforcement agency like the Broward Sheriff's Office to focus on Division initiatives allows for better, more thorough, and ultimately more successful investigations.
The relationship formed between the agencies will be a huge benefit as we move forward in the battle against Money Service Business fa­ cilitated Workers' Compensation Premium Fraud.
The Division of Insurance Fraud extends a big "Thank You" to Bro­
ward County Sheriff Al Lamberti for his support of this project.
Editors Note
The Workers' Comp Insider Newsletter is now available quarterly
online at www.MyFloridaCFO.com/fraud. You can find each new is­ sue posted at our website just before the end of each quarter (March, June, September, December). Previous issues are also avail­ able. If you prefer to receive this publication via e-mail or have com­ ments you wish to share, contact Geoff Branch at:
Geoffrey.Branch®MyFloridaCFO.com.
"The relationship formed be­
tween the agencies will be a huge benefit as we move for­ ward in the battle against Money Service Business facili­ tated Workers' Compensation Premium Fraud."
Summer 2011 Page 5

Worker's Compensation Premium Fraud: How It Works

Dear Fellow Floridians:

At the Cabinet meeting on Tuesday, I announced the creation of a working group to review the practices of certain bad actors in the check cashing services industry who are aiding in workers’ compensation premium fraud. This kind of fraud puts pressure on rates and is crippling those in the business community who play by the rules. These highly organized schemes are diverting more than a billion dollars from Florida’s economy.

This latest workers’ compensation premium scheme is orchestrated by individuals who know the construction and subcontracting industry and are intent on evading payment of workers’ compensation premiums. Florida law generally requires every employee in the construction industry to be covered by workers’ compensation insurance. The effect of this scheme is that workers are left unprotected and honest employers suffer from an uneven playing field because they are consistently outbid on construction projects by those who skirt premium requirements.

We are committed to dismantling this scheme and putting these cheats behind bars. I am looking forward to working with my Division of Insurance Fraud as well as the Office of Financial Regulation, the Attorney General’s Office, and the construction and money services industries to develop solutions for combating this growing crime trend. Bringing together stakeholders will take us one step closer to the solutions we need to expedite jail time for these con artists.

Sincerely,







Jeff Atwater
Chief Financial Officer
State of Florida


Read more here: http://www.myfloridacfo.com/pressoffice/newsletter/

Illegal Construction labor -- Jacksonville, FL - WAWS Fox 29 Reporting

Robert Carlton and his enforcement committee have been participating with ICE in the Jacksonville area to crack down on illegal labor in construction. Ed Howley and Justin Lord are also on the enforcement committee.

Below is a link to a new story about cracking down on this major problem that was aired on FOX NEWS 30 in the Jax market. Congratulations Robert. I would not think this is a good piece for Lennar homes!

Check out the video coverage below:
http://bit.ly/m64ZkG

Law & Disorder: 2 Jacksonville men arrested in illegal construction fraud case

Undercover surveillance of illegal immigrants working at home construction sites in Duval and St. Johns counties led to Saturday's arrests of two men on charges their company, HMC and Associates Construction Group LLC, filed false paperwork and laundered workers' pay. Moises M. Torres and Raul Hernandez-Rodriquez, both of Jacksonville, are in the Duval County jail on $300,000 and $200,000 bail, respectively. The investigation has been under way since 2007 by a task force of police, immigration and state financial investigators. It concentrated on subcontractors who avoid paying workers compensation premiums by setting up fake companies that file false insurance coverage certificates. That reduces the cost of a project and makes them more popular when a contractor is bidding for services, according to the arrest report. Read more at Jacksonville.com: http://jacksonville.com/news/crime/2011-04-12/story/law-disorder-2-jacksonville-men-arrested-illegal-alien-construction#ixzz1JbCP9Xgq

Feb. 11, 2011 - Kiplnger

Coming: More audits of employers’ 1-9 eligibility forms for foreign workers. Immigration and Customs Enforcement will step up the number of routine checkups it makes to ensure that employers are toeing the line when hiring immigrants. Last year, ICE levied fines totaling nearly $7 million for violations auditors found... some solely for paperwork mess-ups, with no undocumented workers discovered.
Self-audits can save employers’ necks. ICE gives just three days’ notice to employers before an inspection, so staying on top of paperwork is critical. Also...
Problems with immigration red tape could spark other regulatory checks, compounding employers’ woes. The feds figure that an employer that’s careless about compliance in one legal arena is likely to fall short in other areas as well. So employers could wind up with a battalion of federal regulators on their case.



Feb. 11, 2011 Knight Kiplinger, THE KIPLINGER WASHINGTON EDITORS