Five arrested for $130,000 US workers comp fraud
Five arrested for $130,000 US workers’ comp fraud
The owner of Preferred Staffing of America, Inc., a temporary staffing agency in Tampa, has been arrested for allegedly running an organized workers’ compensation fraud scheme along with four associates, the Florida Department of Financial Services (DFS) recently announced.
A DFS investigation found that Preferred Staffing’s owner misled clients into believing that his company was a licensed professional employer organization (PEO) and could provide workers’ compensation insurance coverage. Employers were reportedly charged more than $130,000 for workers’ compensation insurance and other services that were never provided.
The owner allegedly formed a partnership with a licensed insurance agent to refer companies to Preferred Staffing for a 45 percent commission. The agent is accused of assisting the owner with falsifying the insurance certificates that were sent to client companies. The agent’s wife, along with two unlicensed insurance agents, is also accused of facilitating the scheme by steering client companies to Preferred Staffing for a commission.
If convicted, the accused face possible criminal sentences of up to 30 years in prison.