FOR IMMEDIATE RELEASE: July 27, 2009
CONTACT: Kyra Jennings or Jennifer Hirst (850) 413-2842
WELL KNOWN ROOFING COMPANY OWNER ARRESTED FOR
WORKERS’ COMPENSATION FRAUD
Probation Includes Public Speaking Engagements to Citizens on the Seriousness of the Crime
TALLAHASSEE – Florida CFO Alex Sink today announced the arrest of Robert McDonald
on chargers of workers’ compensation fraud and grand theft. McDonald, the owner of
Gulfstream Roofing, Inc., a well-known roofing company in south Florida who has been in
business for over 20-years, used fake construction companies to avoid paying workers’
compensation premiums.
Department of Financial Services, Division of Insurance Fraud (DIF) first became suspicious
of Gulfstream Roofing, Inc. while working a prior investigation that involved another check
cashing scheme. Upon completion of that investigation, DIF began pursuing Gulfstream
Roofing, Inc. the beginning of November, 2008. DIF detectives quickly learned about the
illegal activities McDonald was participating in. After reviewing company records, it was
determined that for four years (from 2002 to 2006), Gulfstream Roofing, Inc. moved almost
$3 million in payroll through various fake companies who were incorporated and insured
solely for the purpose of providing a way for Gulfstream Roofing, Inc. to move money under
the guise that it was being paid to insured subcontractors as McDonald reported to Bridgefield
Insurance Company. In reality, the monies went to Gulfstream employees, after paying a
10% check cashing fee to the fake construction companies.
By November 22, 2008, McDonald was arrested on a warrant based on chargers filed by the
Palm Beach County State Attorney’s Office of Workers’ Compensation Fraud and Grand
Theft.
On July 24, 2009, McDonald pled guilty to the charge of Workers’ Compensation Fraud.
McDonald was sentenced to five years probation; ordered to pay, in full at the time of the
plea, over $400,000 in restitution to the Bridgefield Insurance Company; ordered to pay, in
full at the time of the plea, over $6,000 in investigative costs to DIF; and approximately $500
in court costs.
The uniqueness of this case involves the 300 hours of community service work McDonald has
to comply. As part of the 300 hours, McDonald is ordered to make presentations to various
groups and organizations regarding to the risks surrounding Workers’ Compensation Fraud,
as requested by DIF.
“The outcome of this case will hopefully serve as a deterrent to other company owners,”
stated CFO Sink. “Not only did Mr. McDonald’s scam cost him a lot monetarily, he will also
face the emotional task of sharing his criminal story with numerous groups of people; talking
about the dangers and serious penalties of committing worker’s compensation fraud.”
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As a statewide elected officer of the Florida Cabinet, CFO Alex Sink oversees the Department
of Financial Services. A successful businesswoman with nearly three decades of experience
in the private sector, Sink is serving her first term as Florida's CFO. As CFO, Sink's
priorities include using her business experience to cut wasteful government spending,
cracking down on financial and insurance fraud and reforming the state government's
contracting practices. CFO Sink also serves as the State Fire Marshal.