Cases, arrests, prosecutions all up
One of the keys to reforming Florida’s homeowners property insurance market is tackling the growing fraud by a small but determined number of contractors. State regulators report that a recent boost in the number of fraud investigators is definitely helping in the fight. Plus, there’s news of arrests in an unlicensed contractor sting and the latest warning of a “Pig Butchering” cryptocurrency scam.
Fraud Squads: The Florida Department of Financial Services (DFS) reports that the addition of two fraud squads last December funded by the 2021 Florida Legislature has led to a 148% increase in fraud cases, a 55% increase in arrests, and a 129% increase in successful property fraud prosecutions statewide. “This is a major win in the battle against bad actors working together to deliberately game the system to line their own pockets,” said CFO Jimmy Patronis. The two six-person squads, one based in Tampa and the other in Orlando, have together opened nearly 200 cases, resulting in almost $300,000 in court-ordered restitution.
We reported here last December (see More Fraud Squads Please) how DFS is overwhelmed with fraud referrals that often become complex investigative cases. The 2022 Legislature answered the call, funding another 18 positions in the regular session. DFS is also making its presence known in areas where they know contractors are descending upon homeowners, especially after bad weather events, as a friendly reminder they are around and watching! LMA has long advocated this practice to both state and local law enforcement authorities. Congratulations to our hard-working investigators and the new ones we hope will start work soon!
Unlicensed Contractor Sting: DFS fraud investigators also target unlicensed contractors and recently announced the arrest of eight people for that crime in a joint operation with the Manatee County Sheriff’s Office. The eight were arrested for working without a required contractor license and doing construction work without having workers’ compensation insurance, or a proper exemption. Doing so is not only illegal and dangerous, but puts legitimate contractors who shoulder the costs of licensure and insurance at a competitive disadvantage in bidding work. To report suspected contractor fraud, visit FraudFreeFlorida.com.
Cryptocurrency Scam: Police in South Florida warn of a recent cryptocurrency scam known as “pig butchering” or “pig slaughtering” in which victims are enticed to put more and more money into a fake cryptocurrency investment scheme only to “fatten them up” before a scammer disappears with all their money. This scam is reportedly most often perpetrated on dating sites and social media as a new form of a romance scam.
LMA Newsletter of 8-8-22
