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Hurricane Michael Fraud

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Public corruption charges growing

The federal probe into alleged public corruption in the Florida Panhandle in the aftermath of 2018‘s Hurricane Michael is widening.  A former city commissioner and a developer have now been charged, joining a former mayor and a former city attorney in what prosecutors say was a pay-to-play scheme with storm cleanup contracts in the town of Lynn Haven, near Panama City.  The increased scrutiny also netted two Bay County building department officials last week charged with changing records. 

It was last summer that former Lynn Haven Mayor Margo Anderson and former City Attorney Joseph Albritton were indicted by a federal grand jury for their role while in office in illegally steering post-hurricane debris cleanup and construction contracts to a local contractor.  In addition to conspiracy to commit wire fraud and honest services fraud, Anderson was charged with making false statements to FBI agents and Albritton was charged with submitting a false invoice to an insurance company for hurricane debris removal from his residence.

A recent superseding indictment now includes David Finch, owner of Phoenix Construction Company and former Lynn Haven City Commissioner Antonius Barnes.  The indictment alleges that after the Category 5 hurricane struck in October 2018, Finch and Barnes conspired with Anderson and Albritton to ensure that contracts for numerous multimillion-dollar infrastructure and construction projects and post-hurricane debris clean-up projects were awarded to Finch’s firm.  In return, Finch allegedly gave money and gifts to Anderson and Barnes, and Albritton received money from a company doing debris clean-up.

Then last week, the Bay County Sheriff’s Department announced the arrest of the county’s deputy building inspector, Ross Pritchard, and building code officer Crystal Owens for official misconduct.  Pritchard, a licensed contractor and owner of RP Builders is accused of conducting inspections of work completed by his own company, which is a 2nd degree misdemeanor in Florida.  He then allegedly tried to alter public records to cover it up. 

Owens is also accused of changing a public record and submitting a building inspection she never performed.  She allegedly changed the contractor of record on a building permit from Banfield Construction, which was barred from doing work in Bay County, to RP Builders, Pritchard’s firm, covering up what amounted to unlicensed contracting, according to the Sheriff’s Department.

LMA Newsletter of 4-12-21

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Tags: Antonius Barnes, Construction Fraud, Crystal Owens, David Finch, Florida Hurricanes, Hurricane Debris Removal, Hurricane Michael, Insurance Fraud, Joseph Albritton, Margo Anderson, Ross Pritchard

“Lisa this is another great newsletter, and we appreciate the time and energy you put into these informative updates – you are on top of these topics!”

Mike Graham, CEO
Smart Vent Products, Floodproofing.com, & Risk Reduction Plus
Juno Beach, FL

“Thank you Lisa for staying on top of, as well as advocating, for Florida residents and legislative reform. Your newsletters are very informative and enjoy reading the points of view.”  

Shawna Miller, Sr. Claims Quality Assurance & Compliance Manager
Florida Peninsula Insurance Company
Jacksonville, FL

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Laurie Rasberry, Chief Claims Officer
Acorn Claims
Prosper, Texas

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Cynthia Scott, President
University Insurance Group
Davie, FL

“Great article on Risk Rating 2.0!”

Austin Perez, Senior Policy Representative for Federal Housing, Valuation, Insurance and Commercial Issues
National Association of Realtors
Washington, D.C.

“Another great Newsletter on Florida industry this week.  Your service and advocacy in Florida is very important to keeping me updated and apprised of the Florida insurance laws, trends and overall environment.  Something similar is very much needed in Louisiana, too.”

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Pharos Claims Services
Orlando, FL

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Clermont, FL

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Zywave
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Jeffrey Karam, CPCU
Bradenton, FL

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