Patriot National Insurance Group Helps Uncover $70 Million Worth Of Workers' Compensation Fraud And Money Laundering
FORT LAUDERDALE, Fla., Aug. 2, 2012 /PRNewswire/ -- Patriot National Insurance Group assisted in uncovering information that lead to 'Operation Dirty Money', a joint task force operation that shut down a workers' compensation fraud check cashing scheme operating in South Florida.
Guarantee Insurance Company, a subsidiary of Patriot National Insurance Group, was victimized in this attack. Contego Services Group, LLC, a Patriot affiliate, played an important role in providing the evidence needed to arrest the individuals involved in this fraudulent scheme.
The joint task force between the Florida Department of Financial Services' Division of Insurance Fraud and the Broward Sheriff's Office discovered that Hugo Rodriguez, owner of the Oto Group, Inc., was the alleged ringleader and organizer of multiple shell companies. Allegedly these companies purposely understated/concealed their payroll in order to avoid paying insurance premiums with Guarantee Insurance Company. By utilizing these shell companies, Rodriguez was able to manage a large-scale operation to avoid paying the cost of workers' compensation coverage for multiple entities.
Linda Webb, President of Contego Services Group, LLC, said, "Fraudulent acts not only costs the people of Florida millions of dollars in revenue, but promotes a culture of distrust throughout the business community, and depressing job growth when it is most needed." Charles Schuver, President of Guarantee Insurance Company, said, "Patriot National is all about using our expert knowledge and skills to positively impact total workers compensation cost for our policy holder customers. Contego's long-term pursuit of premium fraud is a perfect example of this approach. Their involvement in this criminal case where a premium fraud ring has been shut down will benefit all Florida workers' compensation policyholders. Thanks to Contego's hard work, Florida will be a better place to conduct business."
About Patriot National Insurance Group
Patriot National Insurance Group is an insurance holding company focused on workers' compensation insurance. Patriot National Insurance Group has two operating subsidiaries - Guarantee Insurance Company and Patriot Underwriters, Inc. For further information, please visit www.pnigroup.com.
Patriot National Insurance Group
SOURCE Patriot National Insurance Group