Two Hialeah Businessmen Arrested for Falsifying Payroll Figures
Two Hialeah businessmen were apprehended on Monday for engaging in significant payroll fraud within their drywall company. The purpose of this fraudulent activity was to evade paying hundreds of thousands of dollars in insurance premiums and worker fees.
Accused Individuals and Charges
Francisco Picado, 46, a resident of Hialeah, and Lester Chopped, 44, from Miramar, now face charges related to making false or misleading statements to obtain workers’ compensation benefits and first-degree grand theft. These charges were reported by local media outlet, Local 10 News.
The Scheme
Both Picado and Chopped were the owners of Superior Drywall, a Hialeah-based company. In 2019, they enlisted the services of a third-party company to handle payroll and workers’ compensation coverage.
However, instead of providing accurate payroll figures to the third-party company, the Picados deliberately falsified the numbers.
The Magnitude of the Fraud
Superior Drywall reported a payroll of approximately $38,000, but the actual amount was significantly higher, exceeding $3.25 million.
If the accurate figures had been reported, authorities estimate that the Picados would have been liable for nearly $200,000 in workers’ compensation premiums and over $162,000 in administrative fees.
Uncovering the Deception
During the investigation, it was discovered that the couple had been cashing checks worth millions of dollars at a local store, further implicating them in the fraudulent scheme.
Legal Proceedings
Currently, both individuals are no longer in custody at the Miami-Dade County Jail. It is alleged that they have posted bail to continue the judicial process while enjoying their freedom.
Another Miami Businessman Convicted in Medical Equipment Fraud Case
In a separate case involving fraudulent activities, another Miami businessman has been found guilty and sentenced to over seven years in prison.
The Convicted Individual and the Crime
Daniel Pintado Cazola, 42, has been sentenced to 87 months in prison for his involvement in a scheme that utilized a medical equipment shell company to defraud Medicare and Medicaid. The fraudulent company, named Myers Professional Services, was based in Ft. Myers, Florida.
Pintado was also charged with attempting to conceal his crime by falsely declaring an owner in corporate and bank records.
The Charges
Pintado pleaded guilty to one count of conspiracy to commit health care fraud, wire fraud, and mail fraud, as well as one count of aggravated identity theft.
Ll, a drywall company based in Hialeah. According to the investigation, the two businessmen had been systematically manipulating their payroll figures for several years. They underreported the number of employees and their earnings in order to lower their insurance premiums and worker fees.
By falsifying their payroll figures, the defendants were able to pay significantly less for workers’ compensation insurance and other fees than they should have. As a result, they evaded paying hundreds of thousands of dollars that should have gone towards these payments.
Legal Consequences
The charges against Picado and Chopped carry serious penalties. If convicted, they could face significant fines and potentially lengthy prison sentences. Their assets and properties may also be subject to forfeiture as part of the legal proceedings.
The arrest of these two businessmen serves as a reminder of the consequences of engaging in fraudulent activities to avoid paying proper insurance premiums and fees. Such actions not only harm the insurance system but also affect honest businesses that pay their fair share.
Impact on Superior Drywall
The arrest and legal proceedings will have a significant impact on Superior Drywall. With the owners facing criminal charges, the future of the company is uncertain. It may struggle to maintain its reputation and attract new clients, leading to potential financial difficulties and layoffs for its employees.
Overall, the arrest of these two Hialeah businessmen highlights the importance of accountability and fair practices in business. It serves as a warning to others who may be tempted to engage in similar fraudulent activities to evade financial responsibilities.
Beyond potential fines and lengthy prison sentences for the businessmen, how might the legal proceedings impact the future of Superior Drywall as a company and its employees
There are several ways in which the legal proceedings could impact the future of Superior Drywall as a company and its employees:
1. Reputation and Customer Trust: Legal proceedings can significantly damage a company’s reputation and erode customer trust. If Superior Drywall is found guilty of wrongdoing, it may be seen as untrustworthy by potential clients and existing customers may sever ties with the company. This can lead to a loss of business and financial difficulties for the company.
2. Financial Consequences: Fines and legal expenses can impose a heavy financial burden on Superior Drywall, potentially forcing the company into bankruptcy or severe financial setbacks. This can result in layoffs or even the closure of the business, which would have a direct impact on the company’s employees, potentially leaving them unemployed.
3. Operational Disruptions: Legal proceedings can also cause operational disruptions for Superior Drywall. The company may need to dedicate significant resources, including time and manpower, to handle the legal proceedings. This diversion of attention from day-to-day operations can negatively affect productivity, project delivery, and overall customer satisfaction.
4. Employee Morale and Job Security: Legal proceedings can create a sense of uncertainty and insecurity among Superior Drywall’s employees. They may worry about the future of the company and the potential consequences for their own employment. This can lead to decreased morale, productivity, and loyalty among the workforce.
5. Regulatory Scrutiny and Compliance: Legal proceedings can attract increased regulatory scrutiny and attention to Superior Drywall’s business practices. This may result in more stringent compliance requirements and ongoing monitoring by regulatory authorities. Compliance costs can increase and businesses processes may need to be adjusted, which can create additional challenges for the company and its employees.
Overall, the legal proceedings can have severe ramifications for Superior Drywall as a company and its employees, affecting its reputation, financial stability, operations, and employee morale. The long-term consequences will depend on the outcome of the proceedings and the ability of the company to recover and rebuild its reputation.
This is a clear example of greed-driven actions endangering honest workers and undermining the integrity of the business community. Such unethical practices must face severe consequences to protect both employees and the true entrepreneurs who abide by the law.
This shocking case proves that unethical business practices can have serious consequences. It is absolutely unacceptable for business owners to falsify payroll figures to evade insurance premiums and worker fees. This not only harms employees but also undermines the integrity of the entire industry. Authorities must take strict action against such offenders to ensure justice prevails and prevent similar incidents from happening in the future.