Charged with $620,000 in premium theft
A licensed insurance agent and owner of a Doral insurance agency was arrested and charged with stealing more than $620,000 in premiums that he never applied to paying off the insurance policies that he brokered. Even by Florida standards – ranked first in fraud in the U.S. – this case is a biggie.
Orestes “Rusty” Valentin Rodriguez, owner of Blue Guard Insurance Group represented some of the biggest insurance companies in the state. An investigation by the state Department of Financial Services (DFS) and the Miami-Dade State Attorney’s office uncovered an alleged scheme, where Rodriguez pocketed insurance premiums from a property management company representing a Miami homeowner’s association and never paid the association’s insurance.
DFS fraud investigators with the Division of Insurance Agent and Agency Services say Rodriguez allegedly:
- Used a premium finance company to finance over $100,700 to pay for a $110,000 policy, keeping the money and never paying off the policy.
- Collected down payments of more than $9,200 with customers paying $74,600 to the finance company for policies Rodriguez never purchased on their behalf.
- Applied for nearly a million dollars in additional premium financing, allegedly generating 21 fraudulent premium finance contracts, and ultimately obtaining more than $430,000 from this premium financing.
- Stole more than $2,900 in premium money from a home policy and a business liability policy.
The alleged fraud currently totals more than $620,000 dollars. Rodriguez is changed with one count of first degree grand theft, 21 counts of uttering a forged instrument, 12 counts of second degree grand theft, 7 counts of third degree grand theft and one count of first degree organized fraud. If convicted, Rodriguez could face up to 25 years in prison.
DFS has revoked Rodriguez’ insurance license and he’s been permanently barred from the insurance business in Florida. DFS says Florida currently ranks first in fraud and fourth in identity theft nationwide.
LMA Newsletter of 4-1-19
