Georgia Man Charged with Depriving Liberty Mutual of $9M in Workers’ Comp Premiums

Georgia authorities last week announced the arrest of a contractor charged with underreporting payroll and defrauding Liberty Mutual Insurance Co. of more than $9 million in premiums.

Jose Martinez, 56, of Grayson, was charged with insurance fraud after an investigation found that he had deceived the workers’ compensation insurer by adding false information to a copy of a corporate tax return, Georgia Insurance Commissioner John King said in a statement.

“The fraudulent activity was done to hide his company’s true worker’s compensation liabilities and as a result receive greatly reduced insurance premiums,” King said.

The actions reduced the contractor’s comp premiums by about $9.3 million, he noted.

Martinez was arrested Dec. 5. Further information about his companies was not available.