A Florida construction company owner was arrested for workers’ compensation fraud after concealing almost $6 million in payroll to avoid paying a higher insurance premium.
Miguel Porras, owner of Thiago’s Enterprise Construction Inc., was charged Aug. 22, 2023, with first-degree felony Workers’ Compensation Premium Fraud and Grand Theft. If convicted, Porras could face up to 60 years in prison.
Florida’s Department of Financial Services conducted an investigation of Thiago’s Enterprise Construction, revealing that Porras actively concealed payroll to avoid higher workers’ compensation insurance premiums.
In 2021, Porras allegedly applied for workers’ compensation coverage with Southeast Personnel Leasing Inc. with $56,104 in payroll with an estimated annual premium of $4,400.
However, Porras failed to notify the insurance company of significant payroll changes. Investigators determined that during the policy period, Porras actually collected $5,995,518 in labor costs from contractors to his company.
If the payroll had been reported correctly, Thiago’s Enterprise Construction would have been assessed an additional $357,129 in premium charges.