CFO Jimmy Patronis Announces Arrest in Miami Workers’ Comp Premium Fraud Scheme
MyFloridaCFO, February 28, 2024
MIAMI, Fla. - Today, Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Gustavo Antonio Munguia for Workers’ Compensation Premium Fraud and Grand Theft. Munguia, the owner of American Iron Group Corp was actively concealing his payroll to avoid paying a higher workers' compensation premium. According to Travelers Property and Casualty Company of America, had the additional payroll been reported, American Iron Group Corp would have been assessed approximately $253,000 in additional premium charges.
CFO Jimmy Patronis said, “The State of Florida takes insurance fraud very seriously and I will not tolerate any fraudulent activity when it comes to worker’s compensation. It puts employees in danger and drives up insurance rates for all Florida businesses. My department is committed to upholding the law and ensuring that these bad actors are caught and held accountable. Thank you to our fraud detectives for your hard work in this case and demonstrating our dedication to protecting Florida’s workers and businesses who play by the rules.”
The investigation revealed that Munguia on behalf of American Iron Group Corp, failed to notify his workers' compensation carrier of significant payroll changes. Detectives were able to determine during the policy period, Munguia collected more than $3.1 million in labor costs paid from contractors to his company. According to Travelers Property and Casualty Company of America, had the additional payroll been reported, American Iron Group Corp would have been assessed an additional $253,000 in premium charges.
On February 28, 2024, Munguia was arrested and booked in the Miami-Dade County Jail where he was charged with Workers' Compensation Premium Fraud and Grand Theft. Both are first degree felonies and if convicted on all charges, Munguia faces up to 60 years in prison.