Fla. Towing Owner Pulled Over for Comp 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 Florida 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 Davie, and owner of Bob’s Towing Inc., failed to provide required workers’ comp 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 Mucha was arrested and charged with two counts of workers’ comp fraud. Mucha was booked into the Broward County jail. If convicted, Mucha faces up to 10 years in prison.

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