Five individuals with a South Florida company that provided workers' compensation insurance services to businesses have been hit with a civil complaint by the Securities and Exchange Commission alleging they pulled off a $30 million fraud.
A complaint filed March 6 in U.S. District Court in Miami charged that, between 2001 and 2004, the defendants "siphoned approximately $30 million" from the company, Certified Services Inc. Certified went bankrupt in 2006.
The SEC also alleged that the defendants "participated in a scheme to inflate Certified's financial statements by reporting approximately $47 million in bogus letters of credit as assets while not recording liabilities which reached a high of about $65 million in the third quarter of 2004."
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