1 / 10

Addressing Workers' Compensation Premium Fraud in Florida's Money Services Business

This report examines a fraudulent scheme involving shell companies that manipulate workers' compensation insurance policies. By creating false companies and using their documentation, general contractors evade taxes and obligations, facilitating significant financial losses. The report reveals the alarming scale of these frauds, including $438 million in unpaid taxes and obligations, and discusses the impact on Medicare, unemployment insurance, and social security. It concludes with suggestions for combating this pervasive issue within Florida's Money Services Business.

vern
Télécharger la présentation

Addressing Workers' Compensation Premium Fraud in Florida's Money Services Business

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MSB Working Group 8/25/2011 Money Service Business Facilitated Workers’ Compensation Premium Fraud Geoffrey R. Branch Florida Division of Insurance Fraud

  2. The Scheme • A shell company is set up and incorporated and then a minimal workers’ compensation insurance policy is obtained. The company paperwork is then made available for anyone who wishes to use it to work for a general contractor (GC). The GC writes a check to the shell company, which is negotiated at an MSB where a fee is taken out for both the MSB AND the use of the shell company name and Workers’ Compensation insurance policy.

  3. Currency Transaction Reports

  4. CTR’s Totaling 1 Billion Dollars • $124,000,000.00 in FICA was not paid, FICA is commonly known as social security taxes paid 50/50 by the employee and employer. This is enough money to pay a retired person $1,500.00 per month for 6,888 years. • $29,000,000.00 in Medicare taxes (again 50/50 between employee and employer) enough to pay for 386,666 Dr. office visits at $75.00 per visit. • $27,000,000.00 in State Unemployment taxes, • $8,000,000.00 in Federal Unemployment taxes, •  $50,000,000.00 in Federal Income Taxes (assuming that the average worker would pay 5% of income, and that is low.) • $200,000,000.00 in WC premiums if you assume that these employees worked at jobs that had 20% comp rates, (like concrete construction) • All of the above totals up to:$438,000,000.00 not including all of the other items such as unpaid hospital bills etc.

  5. Powertech Interiors, Inc. • Chief Executive Officer Mario Turcotte • History • Scope and Magnitude of the Problem • Suggestions and Solutions

More Related