Miami, FL (WorkersCompensation.com) - Florida Chief Financial Officer (CFO) Jimmy Patronis announces the arrest of Norma Lopez Cedillo, the President of Nuvo Contractor, Inc., for workers' compensation fraud. Over a more than six-month period, Cedillo allegedly evaded paying nearly $737,000 in workers' compensation insurance premiums. The company allegedly conducted more than $5.5 million in business but reported an estimated $103,000 in anticipated payroll on their workers' compensation insurance policy.
CFO Jimmy Patronis said, “Workers' compensation fraud puts employees at risk of being underinsured and drives up insurance rates statewide for honest, hard-working businesses. Last year alone, my fraud detectives made nearly 400 arrests for workers' compensation fraud. My office is committed to tracking down scam artists and I applaud the great work of our dedicated fraud detectives. I encourage businesses and individuals to report suspected insurance fraud to my website at FraudFreeFlorida.com.”
An investigation by CFO Patronis' Bureau of Workers Compensation Fraud revealed that Cedillo allegedly concealed payroll information to avoid paying higher workers' compensation premiums. Based on financial records from two check cashing companies, it was discovered that Nuvo Contractor Inc. cashed nearly $4 million in payroll by numerous construction companies in the South Florida area. Cedillo reported payroll of only $22,311 and avoided paying more than $737,000 in workers' compensation insurance premiums. The scheme was discovered when their workers' compensation insurance policy was issued and subsequently terminated roughly six months later for non-payment of premium.
Norma Lopez Cedillo was booked into Turner Guilford Knight Correctional Center (TGK) on August 9, 2019, on charges of workers' compensation premium fraud, organized scheme to defraud, and conspiracy to commit grand theft over $100,000. If convicted, she faces up to 30 years in prison. Individuals charged with a crime are presumed innocent until proven guilty.