Florida’s Chief Financial Officer Jeff Atwater and the Department of Financial Services’ Division of Investigative and Forensic Services announced the arrest of Ivan Hernandez, owner of Global Staffing/Professional Staffing and Payroll Services in Ft. Myers, Fla., on July 13. Charges include various counts of a scheme to defraud, aggravated white collar crime, RICO (Racketeer Influenced and Corrupt Organizations Act), and money laundering of more than $100,000. Additional charges may be brought forth.

Hernandez allegedly claimed to provide workers’ compensation insurance and payroll services to his clients but instead provided fictitious policies and pocketed his client’s payments. As a result, Hernandez is being held responsible for the theft of approximately $1,035,662 from his clients.

An investigation by DIFS’ Bureau of Insurance Fraud and the Department’s Division of Workers’ Compensation Bureau of Compliance found that in August 2013 Hernandez obtained a workers’ compensation insurance policy for his company, Global Staffing Services LLC. The policy accounted for two employees, an estimated $51,000.00 payroll and listed Hernandez’s company as a staffing company that provided employee recruiting services. When obtaining the policy, Hernandez stated Global Staffing Services was a staffing company that provided employee recruiting services for various companies but would not directly hire or offer any long-term or short-term staffing services.

The investigation found Hernandez changed Global Staffing Service’s name to Professional Staffing and Payroll Services in March 2015 but continued to carry the company’s previous workers’ compensation policy. Professional Staffing and Payroll Services was found to have entered into numerous contracts with various companies and directly provided staffing services, payroll services, and workers’ compensation coverage for those clients. Hernandez’s company would then charge a premium amounting to a percent of the client company’s weekly payroll. By doing so, Hernandez’s company was in violation of the underwriting requirements established in his original workers’ compensation policy, according to Atwater. 

Hernandez allegedly kept his client’s payments and used the money for his personal use. Hernandez provided fraudulent Certificate of Insurance documents to approximately 58 companies with more than 300 employees in an effort to further conceal his actions.

This case will be prosecuted by the Office of State Attorney Stephen B. Russell, 20th Judicial Circuit. If convicted, Hernandez could face more than 25 years in prison.