Plus, the growing Louisiana law firm scandal
A public adjuster and an unlicensed contractor have been sentenced for ripping-off an elderly man whose home was damaged by Hurricane Michael, Tampa Bay authorities are cracking down on those trying to steal homes from the elderly and dead, plus the latest on the suspension of the McClenny, Moseley & Associates law firm. It’s all in this week’s recap of fraud news.
Hurricane Michael Fraud: Public Adjuster Kenneth Browne of Publicadjusters.com out of Boynton Beach has pled no contest to three counts of Grand Theft in connection with a scheme to defraud a homeowner for repairs to his Marianna home that largely never took place following 2018’s Hurricane Michael. The 78 year-old victim had sought help with his State Farm insurance claim and signed a contract with Brown, who then introduced him to Anthony John Sottilare Jr., who turned out to be an unlicensed contractor from Plant City. The State Farm adjuster estimated damage at $59,627 yet authorities found 31 checks had been made payable from the victim’s bank account to either Brown or Sottilare totaling $242,000. Months later, when little or no repairs had been made, the victim demanded a refund to no avail.
Florida law states that a public adjuster may not participate, directly or indirectly, in the reconstruction, repair, or restoration of damaged property that is the subject of a claim they are adjusting. Both Browne and Sottilare have been sentenced to five years of probation and each ordered to repay the victim $126,000 in restitution, plus 100 hours of community service. Browne’s Florida Public Adjuster license was temporarily suspended last summer. Although no valid license is currently listed, Browne’s website remains active, specifically soliciting Louisiana business, yet stating he is licensed and bonded in the state of Florida.
Identity & Home Theft: Authorities in the Tampa Bay area are alerting the public about criminals, sometimes family members, stealing the identities of the elderly and dead in order to steal their homes. The Tampa Bay Times reports on what Hillsborough County State Attorney Suzy Lopez is calling a concerning trend of property fraud at the cost of seniors or the deceased. Examples cited in the article include a man who forged the signatures of dead notaries and witnesses in order to steal homes in West Palm Beach and Brandon.
McClenny, Moseley & Associates (MMA): Louisiana Insurance Commissioner James Donelon recently issued Directive 221 providing an update on the Texas-based MMA law firm. “Based on the department’s investigation thus far, MMA has admitted to at least 856 fraudulent misrepresentations whereby MMA communicated to Louisiana insurers that they had been retained by Louisiana policyholders to settle claims when MMA did not represent those policyholders,” it said. “MMA’s fraudulent behavior additionally included presenting demands for payment pursuant to the consumer’s insurance policy, directing the adjustment of those claims, and receiving and negotiating insurance settlement checks without the knowledge (and authority to do so) from the policyholder.” Donelon recently suspended MMA from practicing law in Louisiana and directed insurance companies to deal fairly with policyholders formerly represented by the firm.
LMA Newsletter of 8-7-23
