CarShield probe underway in Florida
A South Florida insurance adjuster with a history of troubles is arrested for unlicensed public adjusting, embezzlement and grand theft charges hit a Southwest Florida insurance agent, and Florida authorities announce an investigation into CarShield based on a federal probe that it misrepresented its automobile repair warranties. It’s all in this week’s Fraud News.
Giorgio Giovanni Gonzalez mugshot. Courtesy, Broward County Sheriff’s Office
Insurance Adjuster Busted: A Ft. Lauderdale man whose public adjuster’s license was suspended 11 years ago has been arrested for unlicensed public adjusting and ripping-off his clients. Giorgio Giovanni Gonzalez is charged with two counts of felony Unlicensed Public Adjusting. According to the Florida Department of Financial Services (DFS), Gonzalez’s company, Maximum Claims Recovery, secured contracts for public adjusting and appraisal services, without being so licensed. Last fall, DFS’s Criminal Investigations Division (CID) received complaints and supporting documents that Gonzalez had falsely represented himself as a licensed adjuster and signed contracts with two different policyholders, agreeing to a 20% adjusting fee once the insurance settlements hit. In both cases, his company received and deposited checks from the insurance companies. One policyholder never received any payment at all, and the other received a check in the amount of $16,424 which bounced. All told, Gonzalez failed to remit $34,424 in claims money to their rightful owners. This is Gonazlez’s second stint in the Broward County jail since his first arrest for similar charges in June 2023 and he could face up to 30 years in prison.
Reid McDaniel mugshot. Courtesy, Lee County Sheriff’s Office
McDaniel Insurance Solutions Embezzlement: On Florida’s West Coast in North Fort Myers, insurance agent Reid McDaniel of McDaniel Insurance Solutions was arrested in mid-August for embezzlement and grand theft of his client’s money. DFS initially received complaints about the firm back in May, with one client complaining that McDaniel took $22,000 from him for two policies that he later discovered were cancelled for non-payment. Another client, Kerri Kibbe, spoke with NBC2 about her interactions with the agent, claiming McDaniels was her only hope after she was left with an open claim in the wake of Hurricane Ian. After several policy changes and many long lapses in communication, Kibbe said she was left high and dry with no coverage and not a peep from McDaniel Insurance Solutions. McDaniels posted bond and has remained largely silent, as has the rest of his team.
CarShield Under DFS Investigation: Nationwide vehicle service contract company CarShield has come under heavy scrutiny in the past few months, including a $10 million fine to settle Federal Trade Commission charges of deceptive marketing. In short, the feds say the company was using celebrity endorsements to convince the general public that CarShield’s coverage was comprehensive for all vehicle systems, when in reality the plans contained many loopholes and exclusions. In many cases, the celebrities claimed to be customers of CarShield services themselves, which also turned out to be false in many cases. Now DFS has launched an investigation of its own on CarShield’s Florida operations. DFS regulates and licenses warranty and service contract sales representatives and agencies. Following the recent FTC fines, the Department announced it will conduct a review of sales agents and agencies who promote and sell CarShield products.
LMA Newsletter of 9-3-24
