Naples business owner arrested in $700K workers’ comp fraud scheme
NAPLES, Fla.- The owner of Naples construction company Complete Framing Professionals (CFP) was arrested on fraud charges, accused of avoiding at least $700,000 in workers’ compensation premium payments.
Investigators with the state’s Division of Workers’ Compensation began investigating Raimundo Hernandez-Argueta, 50, in August 2013 when visits to his company’s job sites led investigators to believe that Hernandez was concealing his company’s payroll amount.
Investigators discovered Hernandez obtained a policy through Florida United Business Association providing coverage for four employees, each with an annual wage of $50,000. Hernandez paid $26,910 for the one-year policy.
However, job site inspections documented 108 employees during that time frame and more than $5.5 million in total earnings, according to the state’s Department of Financial Services.
Based on CFP’s actual payroll of $5.5 million, Hernandez should have paid a premium of $728,057 but state officials say he was able to illegally avoid paying more than $700,000 in workers’ compensation premium dues.
Hernandez was arrested by the Collier County Sheriff’s Office and transported to the Collier County Jail where he later posted a bond of $30,000.
He faces up to 15 years in prison if convicted.