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Chief Financial Officer Jimmy Patronis today announced the recent arrest of Juan Jose Castro, owner of JACM Construction Corp., after his alleged attempt to operate a shell company with the sole intent of circumventing the state’s workers’ compensation laws. A “shell company” is an entity that conducts no significant business operations and can be used as vehicle to conduct fraudulent financial transactions, such as workers’ compensation fraud.
Castro obtained a workers' compensation policy for JACM Construction Corp. April 25, 2017. When obtaining the policy, Castro provided his business operated with an estimated annual payroll of $112,000.00 for work classified
under the description of wallboard installation and carpentry.