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Update: New financial revelations have intensified the legal challenges facing Dr. Castellon. According to records found on the Brevard County Official Records website, federal tax liens filed by the IRS disclose significant unpaid tax liabilities, including for $127,103.35 from the 2015 tax year, a separate lien for $212,998 from the 2016 tax year, and a joint lien with Jamie L. Castellon for $169,348.57 from the 2018 tax year, recorded on January 13, 2020. These liens, totaling an estimated $509,449.92 and unconfirmed as paid or released, suggest ongoing financial distress that may have contributed to the felony workers’ compensation fraud case, with Stop-Work Order 24-108-D4 remaining unresolved, further jeopardizing his practice’s operations. Notably, a prior lien for the 2013 and 2014 tax years, recorded on October 3, 2016, was satisfied and released on June 1, 2020.

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Melbourne, FL – Dr. Mauricio J. Castellon, a prominent plastic surgeon operating Castellon Plastic Surgery Center, was arrested on felony charges related to workers’ compensation fraud and violating stop-work orders, as reported by the Florida Department of Financial Services (DFS), Criminal Investigations Division, Bureau of Insurance Fraud. The charges center around serious violations that jeopardize employee safety and undermine fair business practices. He could be facing up to 10 years in prison and is currently out on bond.

Workers’ compensation insurance is a mandatory requirement for most Florida businesses with four or more employees in non-construction industries. This insurance ensures employees injured or sickened due to workplace conditions receive medical care and wage replacement. It also protects businesses from lawsuits by injured employees. Failure to maintain coverage leaves workers vulnerable and gives non-compliant businesses an unfair financial advantage by avoiding premium costs.

Dr. Castellon faces two primary felony charges under Florida Statutes:

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1. Workers’ Compensation Fraud – Failure to Secure Coverage (F.S. 440.105(4)(a)(3)): Investigations revealed that Dr. Castellon, operated without workers’ compensation coverage for extended periods. A policy with Transportation Insurance Company was canceled on September 3, 2022, and another on September 13, 2023, with no exemptions or alternative coverage in place. This deliberate failure to secure mandatory insurance constitutes felony fraud, as it risks employee welfare and evades significant premium costs.
2. Violation of Stop-Work Orders (F.S. 440.105(4)(a)(8)): The DFS issued two Stop-Work Orders (SWOs) to Dr. Castellon’s practice:
   • SWO 23-092-D4 (April 11, 2023) for lack of coverage.
   • SWO 24-108-D4 (April 11, 2024) for continued non-compliance and failure to produce business records within 21 days, violating F.S. 440.107(7).

Despite these orders, Dr. Castellon continued operations, as observed on May 2, 2024, when employees were seen working at the office located at 1499 S. Harbor City Blvd, Suite 301, Melbourne, FL. Ignoring an SWO is a felony, reflecting a willful disregard for legal obligations and employee safety. An additional $1,000 penalty was imposed for this violation.

The DFS investigation, spanning March 2023 to February 2025, uncovered consistent non-compliance. Key findings include:

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• March 15, 2023: Compliance Investigator Kent Howe conducted a routine inspection, identifying eight employees working without coverage. A Business Records Request (BRR1) was issued for December 15, 2022, to March 15, 2023.
• March 1, 2024: Investigator Kirk Glover confirmed ongoing operations with six employees and no active coverage or exemptions. A second BRR1 was issued for December 1, 2023, to March 1, 2024, but the practice failed to comply, leading to SWO 24-108-D4.
• April 17, 2024: A new policy with Hartford Fire Insurance Company was secured, but the practice still failed to provide requested records, and the SWO remains unresolved.
• May 2, 2024: The office was observed operating in violation of the SWO, with employees present and no compliance with record requests.

Interviews with Dr. Castellon and former office manager Jenna Bemis revealed conflicting narratives:

• Dr. Castellon’s Account: He claimed Bemis was responsible for managing the workers’ compensation policy and had abandoned her duties. He stated he relied on her to rectify coverage issues and was unaware the SWO was unresolved.
• Jenna Bemis’ Account: Bemis stated she reinstated the policy twice due to Dr. Castellon’s failure to pay bills. She confirmed notifying him of coverage lapses and the SWO but said he retained control over finances, limiting her ability to manage payments.

Dr. Castellon faces significant potential penalties due to his felony charges. For each count of failing to secure workers’ compensation insurance under $20K and workers’ compensation fraud less than $20,000, classified as third-degree felonies, he could face up to 5 years in prison, a fine of up to $5,000, or both, per count. Additionally, the unresolved Stop-Work Order violations may lead to further financial penalties, including the previously imposed $1,000 fine, and potential restitution costs to affected employees or the state.

Dr. Castellon’s actions not only violated Florida law but also endangered employees who could face financial hardship if injured without coverage. Non-compliance undermines fair competition, as compliant businesses bear higher costs to meet legal requirements.

Castellon Plastic Surgery Center, located at 1499 S. Harbor City Blvd, Suite 301, Melbourne, FL, remains under scrutiny as the SWO 24-108-D4 is still unresolved. This case serves as a stark reminder of the serious consequences of workers’ compensation fraud and the importance of adhering to state regulations to protect Florida’s workforce.

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