An Orlando-area contractor is accused of quietly running a multimillion-dollar payroll shell game, and state investigators say it left workers uncovered while dodging more than $1 million in workers' compensation premiums. Jacques G. Denomme was arrested on March 3 after investigators alleged he spent roughly two years hiding payroll through two money-service businesses and shorting his insurer by about $1.09 million. Prosecutors in Martin County have charged him with organized scheme to defraud and workers' compensation premium avoidance fraud.
State investigators say payroll was hidden from insurer
In a March 16 press release from the Florida CFO, the Department of Financial Services' Criminal Investigations Division said detectives concluded that Denomme concealed payroll and did not notify his insurer of major payroll changes. According to the release, he allegedly funneled payments through two money-service businesses and deprived an insurance company of $1,090,504 in workers' comp premium payments. Florida CFO Blaise Ingoglia called the conduct deliberate fraud that "hurts small businesses, their employees, and Florida insurance policyholders."
Arrest details and early court moves
Industry coverage identified Denomme as a Port St. Lucie resident who was arrested in Martin County and released on bond earlier this month, with a Martin County online court file that initially did not show an arrest warrant. Insurance Journal reports that state licensing records do not list a contractor license under Denomme's name and that a judge has temporarily appointed a public defender. According to that reporting, the Office of Judges of Compensation Claims did not have any cases listed under an employer with his name.
How the alleged payroll shell game worked
Investigators and trade outlets say the core of the alleged scheme was simple: route payroll through other businesses so the books look smaller than they really are. By pushing payments through those money-service businesses, Denomme is accused of masking the true size of his payroll and avoiding premium recalculations that would have raised his workers' comp costs. The reported timeline matches the state account that the scheme ran for about two years and led to roughly $1.09 million in unpaid premiums, leaving workers without proper coverage. WorkCompCentral summarized the state's allegations in its reporting.
Why state officials say it hits honest employers
State officials argue that premium-avoidance schemes like this one do more than shave costs for a single contractor. They say the unpaid premiums effectively shift the financial burden to businesses that follow the rules and can leave injured workers scrambling when there is no valid coverage in place. Florida's Division of Investigative & Forensic Services has documented hundreds of fraud referrals tied to employer premium schemes and millions of dollars in requested restitution, and has brought arrests and prosecutions in other payroll concealment cases. Those trends are outlined in the department's most recent annual enforcement report. Florida DFS annual report
Charges, prosecution and what to watch next
Denomme faces charges of organized scheme to defraud and workers' compensation premium avoidance fraud, and the Martin County State Attorney's Office is expected to handle the prosecution, according to state officials and local coverage. Investigators have urged anyone with information about similar conduct to use the department's fraud tip portal, and local outlets have been reposting the state's announcement as the case works its way through the system. As one local report notes, the next key developments will come through more detailed court filings that show whether formal indictments or additional hearings are scheduled. West Orlando News
Observers say visible enforcement actions like this one, backed by a public tip line, are meant to send a message to employers who might be tempted to trim their workers' comp bills by hiding payroll. Any formal indictments or hearing dates in Denomme's case will appear in Martin County court dockets, and trade publications are expected to keep following the agency's fraud enforcement updates, as reported in Insurance Journal.
