Brothers Charged In Workers Comp Fraud
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FT LAUDERDALE (CBSMiami) - Two Miami brothers have been charged in a workers compensation scam.
Jorge Hernandez-Gonzalez, 25, set up a shell business Hernago and Associates Inc. and then purchased a minimal worker's compensation policy for it, according to Broward Sheriff's investigators.
Hernandez-Gonzalez then allegedly rented his 'certificate of insurance' to a variety of uninsured trade contractors. General contractors who hired the uninsured subcontractors were led to believe they were associated with Hernago and Associates Inc. and therefore did have insurance, according to Hernandez-Gonzalez's arrest affidavit.
According to state records, Hernago and Associates Inc. was set up on March 10th, 2015 and the sole officer was Jorge Hernandez-Gonzalez. The address of the business turned out to be a single family home in residential neighborhood inTamarac.
When All Florida Insurance issued Hernago and Associates Inc. a worker's compensation policy, the premium was based on seven employees, an annual pay roll of $143,500. The type of work they allegedly performed was plastering stucco.
On September 4th, investigators received a tip that Hernandez-Gonzalez had told his brother Edwin Hernandez-Gonzalez, 23, to cash several business to business checks, payable to Hernago and Associates Inc., at the Check Cashing Store on NW 7th Avenue in Miami.
Authorities were waiting for him when he came out and found nearly $50,000 dollars in cash in his pocket from the checks he had just cashed. He was taken into custody for questioning. Hernandez-Gonzalez told police the money belonged to his brother and the company.
Jorge Hernandez-Gonzalez reportedly told police that the money belonged to a guy who he only knew by his first name. He said the guy offered him $1,600 a week to be the sole officer of Hernago and Associates Inc. and cash all the business to business checks.
Hernandez-Gonzalez was informed that he was defrauding All Florida Insurance by the number of employees and payroll exposure.
Both brothers were charged with scheme to defraud, workers compensation fraud and grand theft.