Florida man arrested in $1M workers' compensation fraud scheme: CFO

TALLAHASSEE, Fla. (WFLA)— A Florida man was arrested after a $1 million workers' compensation fraud scheme, CFO Blaise Ingoglia announced.

Jacques G. Denomme, from Martin County, was arrested by the Department of Financial Services Criminal Investigations Division after he allegedly tried to avoid paying higher workers' compensation premiums by hiding payroll information, Ingoglia said.

"A scheme to commit fraud of this magnitude is no minor offense. This is deliberate fraud that hurts small businesses, their employees, and Florida insurance policyholders by driving up workers' compensation insurance premiums. This guy got greedy, but now he's getting booked. My investigators are actively working to stop those who orchestrate these types of large-scale fraud schemes and put them behind bars," CFO Blaise Ingoglia said.

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Denomme allegedly used two money service businesses to hide payroll and did not notify his insurance company of significant payroll changes.

According to the CFO, Denomme engaged in a scheme to avoid paying the full workers' compensation premiums due for two years.

Denomme deprived the insurance company of $1,090,504 in payments and failed to protect his employees, the CFO said.

He was arrested on March 3 and charged with organized scheme to defraud and Workers' Compensation premium avoidance fraud.