A south Florida contractor faces significant jail time after he was arrested for vastly underreporting his payroll to his workers’ compensation insurer.
Hector Gutierrez-Morales, owner of HG & AKE Construction Corp., in Miami, was charged with workers’ compensation premium fraud, Florida CFO Jimmy Patronis announced. The contractor allegedly reported to Travelers Insurance that his annual payroll was $161,000.
In reality, it was more like $3 million, authorities said. The understatement fraudulently reduced the company’s annual premium from $796,762 to $28,000, according to the news release.
“The investigation revealed that Gutierrez-Morales, on behalf of HG & AKE Construction Corp., failed to notify his insurance company of significant annual payroll changes,” the bulletin said. “Detectives were able to determine that during these policy periods, Gutierrez-Morales collected more than $8.8 million over three years for labor costs paid from contractors to his company.”
The man was booked into the Miami-Dade County Jail on July 20. He appears to have posted bail money and was not listed as an inmate in the jail as of this week.
Topics Florida Contractors
Was this article valuable?
Here are more articles you may enjoy.
Liberty Mutual Posts Q2 Loss of $585M Driven By Catastrophes 
Missouri’s Cameron Mutual Placed Into Rehabilitation 
Maui Fire Is Deadliest in US in 105 Years, With 93 Killed 
Finance Firms’ Return-to-Office Crackdown Could Backfire: Deloitte 
