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Payroll Was Millions More than Florida Contractor Reported, DFS Says

July 27, 2023

A south Florida contractor faces significant jail time after he was arrested for vastly underreporting his payroll to his workers’ compensation insurer.

Hector Gutierrez-Morales, owner of HG & AKE Construction Corp., in Miami, was charged with workers’ compensation premium fraud, Florida CFO Jimmy Patronis announced. The contractor allegedly reported to Travelers Insurance that his annual payroll was $161,000.

In reality, it was more like $3 million, authorities said. The understatement fraudulently reduced the company’s annual premium from $796,762 to $28,000, according to the news release.


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