A scheme known as the "Florida Plan" has reportedly diverted up to $1 billion each year from the state's economy as subcontracting companies use the method to escape expensive workers' compensation premiums. This white collar crime occurs as a shell company is established to facilitate opportunities for subcontractors to secure contracts without actually purchasing workers' compensation coverage. A shell company will secure an inexpensive policy that will then be rented along with the company name to a subcontractor. Although the subcontracting organization is able to provide documents that appear to reflect proper coverage, the majority of company employees are not protected.
In a recent case, a man who allegedly set up 10 different shell companies in an eight-year period reportedly collected nearly $75 million through his activities as a subcontractor. He reportedly paid $2,000 per month to another party who carried workers' compensation insurance and rented it to these shell companies. He eventually pleaded guilty to six first-degree felony charges of workers' compensation fraud, assisting investigators in the case.