Volume 1 Number 21
May 24, 2004











TEXT-ONLY VERSION




 

TOWING CONTRACTOR ARRESTED FOR WORKERS’ COMPENSATION FRAUD                         

The owner of a towing company with local government contracts has been charged with failing to provide workers’ compensation for his employees, according to Chief Financial Officer Tom Gallagher.

“Employers who avoid paying workers’ compensation premiums contribute to the rise in workers’ compensation rates and gain an unfair advantage over competitors,” said Gallagher, who oversees the Department of Financial Services.  “We will continue to aggressively investigate instances of fraud and abuse of the workers’ compensation system.”

Investigators with the department’s Division of Insurance Fraud say Michael Mucha, 42, of 14761 Madison Place in Davie, and owner of Bob’s Towing Inc., failed to provide required workers’ compensation coverage for his employees, including at least 20 drivers.  Mucha allegedly provided a fraudulent certificate of coverage to Town of Davie employees, with which the company had a contract for services.  The Davie municipal employees then contacted the Davie Police Department.

State insurance fraud investigators were contacted to assist, and Michael Mucha was arrested and charged with two counts of workers’ compensation fraud.  Mucha was booked into the Broward County jail.  If convicted, Mucha faces up to ten years in prison.

Under Florida law, employers in non-agriculture or construction-related industries, who have four or more employees, must maintain workers’ compensation coverage for their employees. 

The Department of Financial Services, Division of Insurance Fraud, investigates various forms of fraud in insurance, including health, life, auto, property and workers’ compensation insurance.  Anyone with information about this case or another possible fraud scheme should call the department's Fraud Hotline at 1-800-378-0445.  A reward of up to $25,000 may be offered for information leading to a conviction.