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National Insurance Crime Bureau

CFO Jimmy Patronis Announces Arrest in $193,000 Osceola County Workers’ Compensation Premium Fraud Scheme

OSCEOLA COUNTY - Today, Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Julio Enrique Maldonado DBA G.G.M. Construction LLC, for workers' compensation premium fraud and additional charges for allegedly concealing payroll information to avoid paying more than $193,000 in workers’ compensation premiums.

CFO Jimmy Patronis said, “Criminals will find any way they can to cheat the system, and as your CFO, I will do everything in my power to bring those who break the law to justice. This type of fraud has a major impact on our state as it raises insurance rates for Florida families. I appreciate the hard work of my fraud detectives for bringing this alleged fraudster to justice.”

An investigation was conducted by CFO Patronis’ Division of Investigative & Forensic Services (DIFS), Bureau of Workers Compensation Fraud revealed that the owner of G.G.M. Construction LLC, Julio Maldonado, claimed $120,000 in annual payroll to Builders Insurance Company for the policy periods of February 2018 to November 2019. Due to the estimated annual payroll provided, the estimated premium calculated for the policy period was $15,780. During the investigation, detectives discovered that Maldonado cashed several checks from January 2019 through December 2020, which totaled over $5.5 Million. Maldonado did not respond to the request from Builders Insurance Company to conduct an audit. Based on Maldonado grossly underestimating/ reporting his business payroll, Builders Insurance Company, was deprived of $193,284 in premiums.

Julio Maldonado was arrested on April 30, 2021 and booked into the Orange County Jail. Maldonado faces charges of workers compensation fraud, under reporting payroll greater than 100K, workers compensation fraud - false statements on application greater than 100K, and Florida communication fraud aggregated value of 50K or more. If convicted, he faces up to 30 years.
 

News article: https://www.myfloridacfo.com/sitePages/newsroom/pressRelease.aspx?id=5886