CFO Jimmy Patronis Announces Arrest in $88,000 Miami Workers’ Compensation Premium Fraud Scheme
5/7/2021
MIAMI – Today, Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Yoni O. Martinez, president and owner of LAMX Construction Company Corporation, for workers' compensation premium fraud and grand theft for allegedly concealing payroll information to avoid paying more than $88,000 in workers’ compensation premiums.
CFO Jimmy Patronis said, “I hope this arrest serves as a warning to other criminals that if they commit fraud they will be held accountable. As your CFO, I am working every day to put an end to fraud in our state. Worker’s compensation fraud increases insurance rates for businesses across the state. I thank the hard work of my fraud detectives for bringing alleged criminals to justice.”
An investigation was conducted by CFO Patronis’ Division of Investigative & Forensic Services (DIFS), Bureau of Workers Compensation Fraud revealed that the president and owner of LAMX Construction Company Corporation, Yoni Martinez, actively concealed payroll to avoid paying a higher workers’ compensation premium. Martinez claimed $119,150 in annual payroll to Southeast Personnel Leasing for the policy periods of July 2014 to January 2017. Due to the estimated annual payroll provided, the estimated premium calculated for the policy period was $19,433. During the investigation, detectives discovered that the company cashed more than $635,636 in labor instead of the $119,150 Martinez had originally reported when obtaining the policy with Southeast Personnel Leasing. Had the payroll been properly reported, LAMX Construction Company Corporation would have been charged a total of $107,549 in workers’ compensation premium. This resulted in a net loss of $88,116.24 in workers' compensation premiums based on the owners' alleged fraudulent actions.
Yoni O. Martinez was arrested on May 3, 2021 and booked into the Turner Guilford Knight Correctional Center in Miami-Dade County. Martinez faces charges of workers’ compensation premium fraud and grand theft. If convicted, he faces up to 20 years in prison. Individuals charged with a crime are presumed innocent until proven guilty.
CFO Jimmy Patronis said, “I hope this arrest serves as a warning to other criminals that if they commit fraud they will be held accountable. As your CFO, I am working every day to put an end to fraud in our state. Worker’s compensation fraud increases insurance rates for businesses across the state. I thank the hard work of my fraud detectives for bringing alleged criminals to justice.”
An investigation was conducted by CFO Patronis’ Division of Investigative & Forensic Services (DIFS), Bureau of Workers Compensation Fraud revealed that the president and owner of LAMX Construction Company Corporation, Yoni Martinez, actively concealed payroll to avoid paying a higher workers’ compensation premium. Martinez claimed $119,150 in annual payroll to Southeast Personnel Leasing for the policy periods of July 2014 to January 2017. Due to the estimated annual payroll provided, the estimated premium calculated for the policy period was $19,433. During the investigation, detectives discovered that the company cashed more than $635,636 in labor instead of the $119,150 Martinez had originally reported when obtaining the policy with Southeast Personnel Leasing. Had the payroll been properly reported, LAMX Construction Company Corporation would have been charged a total of $107,549 in workers’ compensation premium. This resulted in a net loss of $88,116.24 in workers' compensation premiums based on the owners' alleged fraudulent actions.
Yoni O. Martinez was arrested on May 3, 2021 and booked into the Turner Guilford Knight Correctional Center in Miami-Dade County. Martinez faces charges of workers’ compensation premium fraud and grand theft. If convicted, he faces up to 20 years in prison. Individuals charged with a crime are presumed innocent until proven guilty.
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About CFO Jimmy Patronis
Chief Financial Officer and State Fire Marshal Jimmy Patronis is a statewide elected official and a member of Florida’s Cabinet who oversees the Department of Financial Services. CFO Patronis works each day to fight insurance fraud, support Florida’s firefighters, and ensure the state’s finances are stable to support economic growth in the state. Follow the activities of the Department on Facebook (FLDFS) and X (@FLDFS).