Okeechobee Contractor Alleged to Have Filed Fake Workers’ Comp Claims

Okeechobee building contractor Merle Dee Johnson bonded out of the Okeechobee County Jail on $30,000 bond, after Florida investigators charged him with workers’ compensation fraud and grand theft.

Johnston was arrested after he allegedly misused loan money and failed to complete construction on an Okeechobee home. The complaint against Johnston also claims the general contractor failed to carry proper workers’ compensation coverage.

According to Florida CFO Tom Gallagher, Johnston was initially paid $60,000 from a couple’s construction loan. The money was to begin work on their new home in Okeechobee County. A Department of Financial Services release alleges Johnston reportedly took $23,000 for his personal use.

Six months after Johnston was paid to start the project, detectives said only the foundation, blocks and trusses were installed. Johnston never returned to complete the work and the structure collapsed.

Detectives working the case also learned that Johnston had not paid several outstanding bills. It was also determined that he had underreported his income and ultimately was working without proper workers’ compensation coverage.

Johnston allegedly billed the couple for approximately $19,000 in labor and supervision cost, while reporting only $2,300 in labor costs. Fraud detectives learned that Johnston reported only $2,300 in payroll for the entire year, although he was working other jobs.

Topics Claims Workers' Compensation Contractors