The owner of a maintenance company is facing criminal charges after the state said he wasn’t carrying the required workers compensation insurance.
Not only that, the company had contracts with three area municipalities and the investigator said the owner sent each of them falsified proof of coverage.
The tip was self-generated by the Florida Department of Financial Services and covers the period from Aug. 18, 2020, through Dec. 31, 2021.
Total Maintenance had workers compensation coverage until 2018.
According to the Bureau of Insurance Fraud, “A search of the Coverage and Compliance Automated System (“CCAS”) to verify workers compensation insurance showed Total Maintenance had workers compensation coverage until 2018. The last policy shown for Total Maintenance was through Associated Industries Insurance Company, which expired July 27, 2018. It also showed [Edward] Galbraith had a workers compensation exemption which was applied for in 1995. The records from CCAS indicated Galbraith’s workers compensation exemption had no expiration date.”
The state found Galbraith was using a money service business in Jupiter to cash business-to-business checks for Total Maintenance.
…including approximately $669,092 in 2021 from the city of West Palm Beach
The investigator wrote, “These records showed from January 2021 to May 2022, Galbraith cashed over $1 million in business-to-business checks issued to Total Maintenance at this location, including approximately $669,092 in 2021 from the city of West Palm Beach, approximately $2,101 from the city of Palm Beach Gardens, and approximately $16,626 from the town of Palm Beach. It should be noted, from January 2021 to June 2022, Galbraith reported approximately $887,429 in payroll through Paymaster.”
He went to the West Palm Beach clerk’s office “for information and documents pertaining to the business relationship between WPB and Total Maintenance.”
I observed multiple indications the COIs were possibly fictitious.
A contract from 2014 turned up, along with certificates of insurance, or COIs. The investigator was shown two and wrote, “I observed multiple indications the COIs were possibly fictitious. The first COI, dated 08/18/20, had text in a different font size and color from the other text on the certificate. It showed workers compensation coverage through Nationwide Insurance Corporation, policy number [], with effective dates of 10/31/20 to 10/31/21.
“The second certificate of insurance, dated 09/09/21, had the same font and color discrepancies, listed the same workers compensation policy number and insurance company, and showed the policy to be effective 09/09/21 through 10/31/22.
I am aware that workers compensation policies are only effective for one year.
“Through my professional training and experience, I am aware that workers compensation policies are only effective for one year. Policy numbers for workers compensation coverage change each policy period, as well.”
Then, he went to Jupiter and met with an employee of Insurance Agency of America (“IOA”) who “was listed as the producer on both of the COIs given to WPB. I showed him copies of the COIs provided to WPB by Galbraith.
He stated the certificates were not issued by IOA.
“He stated the certificates were not issued by IOA. [He] pointed out multiple differences between COIs issued by his company and those presented to WPB. He stated the color and consistency of the way the numbers were entered into boxes were not consistent with COIs issued by his company. The policy numbers listed on the COIs were numbers from expired policies or from policies which did not exist. He also specified the contact person listed on the COIs for IOA [name] had not been employed at IOA since 2019 and the email address listed for her was not accurate.
“[He] stated IOA did it one time provide services for Total Maintenance including workers compensation, automotive, and general liability insurance, but based on internal records had not provided coverage for Total Maintenance since 2018. He also stated, based on internal records, IOA had not provided any services for Total Maintenance since 2019, including issuing any COIs.
the fictitious COIs were knowingly presented and included false information
“Total Maintenance did not have active workers compensation insurance coverage at the time the COIs were presented to WPB. Therefore, the fictitious COIs were knowingly presented and included false information as proof of coverage, in violation of [the law].”
Next was the town of Palm Beach (“TPB”), where the investigator wrote about meeting with two employees of the Purchasing Division. One of them provided two COIs that Total Maintenance gave the town.
“The first COI was dated 10/21/20 and listed commercial general liability, automobile liability, and workers compensation and employers liability coverage. IOA was listed as the producer and [the same former employee] was listed as the contact for IOA.
“The second IOA was dated 09/09/21 and listed commercial general liability, automobile liability, and workers compensation and employers liability coverage. IOA was listed as the producer and [that same former employee] was listed as the contact for IOA. …
the person who received this COI was no longer employed…
“Also included was a printout of a page documented by [name] showing a COI was received on April 6, 2020, at 10:36 p.m. [The town’s employee] stated the person who received this COI was no longer employed with TPB.
“Total Maintenance did not have active workers compensation insurance coverage at the time the COIs were presented to TPB. Therefore, the fictitious COIs were knowingly presented and included false information as proof of coverage in violation of [state law].”
Then to Palm Beach Gardens (“PBG”), where “A Purchase Award Transmittal document was signed in 2020 for PBG. This document showed Total Maintenance was awarded a contract totaling $1,250,000 for ‘Contract Labor Services for Golf Course.’ This contract appeared to be signed by Galbraith on page 7.
must maintain certain types of insurance including workers compensation
“The invitation for bidding stated the vendor would provide all labor and must maintain certain types of insurance including workers compensation insurance and general liability insurance. COIs needed to be provided to PBG as proof of coverage.”
The city’s purchasing and contracts director showed the investigator, “The first COI was provided via email to [name], the risk management coordinator for PBG, on July 25, 2020, at 7:51 a.m., by Galbraith’s [son-in-law, listed as a manager]. This COI was dated 10/21/19 and listed commercial general liability, automobile liability, and workers compensation coverage. The producer listed on this COI was IOA.
“The second COI was provided via email to [the risk management coordinator] on Oct. 7, 2021, at 11:33 a.m. from Galbraith. This COI was dated 09/09/21 and listed commercial general liability, automobile liability, and workers compensation coverage. The producer listed on this COI was IOA.
“Total Maintenance did not have active workers compensation insurance coverage at the time the COIs were presented to PBG. Therefore, the fictitious COIs were knowingly presented and included false information as proof of coverage in violation of [state law].”
He admitted to not having insurance for ‘two or three years.’
After that, the investigator spoke with Galbraith and according to the arrest report, “He admitted to not having insurance for ‘two or three years.’ When he assumed ownership of the business, he believed workers compensation was being withheld by Paymaster, the payroll company used by Total Maintenance. Prior to assuming the administrative responsibilities for Total Maintenance, he was aware workers compensation was required to be held by the business.
Galbraith stated he made them on his computer and provided them.
“Galbraith stated [his son-in-law] was an employee of Total Maintenance and the company had 10 or 11 employees. When asked about the certificates of insurance which were presented to the municipalities, Galbraith stated he made them on his computer and provided them.
“Upon learning Total Maintenance did not have insurance coverage, Galbraith obtained coverage for the business. He provided certificates of insurance which showed Total Maintenance had a workers compensation policy with Cornerstone Capital Group and general liability through US Specialty Insurance Company.
required taxes were withheld, workers compensation was not
“Records obtained from Paymaster showed Total Maintenance had been utilizing the company’s payroll services since 2001 and although required taxes were withheld, workers compensation was not.”
And finally, “Records from Cornerstone Capital showed Total Maintenance began utilizing their payroll service on June 8, 2022 and listed the number of employees as 10. … Galbraith obtained workers compensation insurance coverage upon learning his company did not have the required active coverage. These actions confirmed Galbraith was aware workers compensation coverage was statutorily required for his company, Total Maintenance, yet failed to obtain it.”
Last, the investigator wrote in his conclusion, “Galbraith, as the owner and officer of Total Maintenance, meets the definition of employer and is the party responsible for compliance with [state law].
a systematic, organized manner with the intent to defraud one or more persons
“[The law says] every employer shall secure the payment under this chapter.
“Galbraith did knowingly present multiple false, forged, or altered documents (i.e., certificates of insurance) as evidence of compliance with Florida State Statutes pertaining to workers compensation coverage. Galbraith did so in a systematic, organized manner with the intent to defraud one or more persons, or to obtain property from one or more persons by false or fraudulent pretenses or representations.”
Edward Galbraith was charged with one count of failing to secure workers compensation insurance, which is the first-degree felony; and three counts of presenting false certificates of workers compensation insurance, which is a third-degree felony.
He was booked on Nov. 22 at 6:23 a.m. and released in lieu of $12,000 bond about 12 hours later, at 6:50 p.m.