Insurance Fraud Overview. Florida Department of Financial Services Division of Insurance Fraud Captain David Lindsay,

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1 Insurance Fraud Overview Florida Department of Financial Services Division of Insurance Fraud Captain David Lindsay, May 10 th 2013

2 Division of Insurance Fraud We are a law enforcement agency created in 1976 to combat insurance fraud - commonly referred to as DIF In February 2009, DIF became accredited by the Commission for Florida Law Enforcement Accreditation (CFA) We have field offices in Miami, Plantation, West Palm Beach, Ft Myers, Orlando, Tampa, St Petersburg, Ocala, Jacksonville, Pensacola and Tallahassee Consisting of 22 squads with 153 sworn personnel including supervisors, and another 49 support staff Bureau of Workers Compensation has 49 of those positions, including dedicated squads in Orlando, Palm Beach and Miami

3 Division of Insurance Fraud In addition to the Workers Comp squads, we have other specialized squads PIP squads in Miami, Broward, Palm Beach, Orlando and Tampa Several detectives are assigned to task forces working with other agencies, including Mortgage Fraud and Money Laundering, Medical Fraud We also employ dedicated State prosecutors in many Regions of the state, Miami, Broward, Palm Beach, Orlando, Tampa and Jacksonville

4 Division of Insurance Fraud We have a Training and Special Ops Unit located in Tallahassee with regional personnel We have deployed as part of the ESF 16 Statewide Emergency Plan in response to hurricanes or other natural disasters

5 Division of Insurance Fraud DIF also has a Crime Intelligence Analyst Unit Consists of 17 civilian personnel who provide invaluable assistance to detectives in the areas of research, data collection, crime trends and analysis Located in the field offices, most are assigned to a squad

6 Insurance Fraud in Florida Since July 2003, DIF has received more than 118,720 fraud referrals statewide, including more than 13,221 during this fiscal year Since July 2003, DIF has made more than 9,126 arrests

7 PIP Fraud The Fake Insurance Card Crash Reports Solicitation Patient Brokering The PIP Patient Jump-Ins Accident Clinics Doctors / Chiropractors The Attorneys Staged Accidents

8 Workers Compensation Employee claims False claims of injury Collect while working another job Identity theft Employer / Premium Frauds Working without coverage False certificates of insurance Under-reporting employees Wrong classification of employees

9 Healthcare / Medical Fraud Medical clinics Drop box schemes Medical discount card scam Unlicensed professionals

10 Vehicle Fraud Auto Ditching - owner can t make monthly payment or over the lease mileage limit Inflate the loss with fraudulent upgrades or simply claim non-existent items were stolen (rims, stereo, etc) Body shops / chop shops Windshield replacement schemes Cloned autos / titles Fraud Construction equipment theft

11 Homeowners Phony burglary loss Homeowners claiming renters property Hurricane claims Kitchen fires / Arson Broken pipes Roofing damage schemes Inflate a legitimate loss Fraudulent sink hole claims Victim becomes a criminal

12 Licensees Insurance Agents Theft of consumers premiums Annuity fraud False certificates of insurance Sale of unauthorized insurance products Unlicensed agents Public Adjusters Inflated claims Take advantage during disaster Unlicensed Adjusters Bail Bonds Solicitation Theft of collateral

13 Other Fraud Unlicensed Entities Disability Life Insurance Life insurance / Stranger Originated Life Ins. Policy Slip and Falls Marine Mortgage Faud Securities Fraud Title Fraud Warranty Application Fraud

14 Lou Pearlman of Trans Continental

15 Lou Pearlman (The Bad Days)

16 Arrests Statewide 9,100+ Application Fraud 240 Financial Fraud 130 Healthcare Homeowners Licensees 708 PIP related arrests 3,383 Vehicle Fraud 526 Workers Compensation 2,525

17 Richard Incandela, STOLI Fraud Jailed Lake Forest Scion In `Living Hell' To prosecutors and his victims, Richard Incandela was the consummate con man, a scion of privilege who tried to scam everyone in a high-stakes game of financial juggling. To his attorney and family and in his own eyes, Incandela was a desperate man, verging on suicide as he tried gamely to sustain his Lake Forest lifestyle and keep from drowning in a sea of red ink.

18 Being a crock is stressful

19 Major Cases throughout the State $100 million work comp fraud involving an employee leasing company 2008 Arrested elderly woman who filed nearly 500 false medical claims to collect $640, Preacher and his wife charged in an $8 million mortgage scheme victimizing elderly homeowners 2006 Arrested 17 persons in a $15 million mortgage fraud scheme 2006 Arrested 7 persons in a work comp fraud scheme involving check cashing stores

20 The Dedicated Prosecutor Program In September 2003, the FAJUA, Miami SAO and DIF agreed to fund the first dedicated PIP prosecutor The purpose is to promote a level of consistency in prosecutions and take a tougher stand against fraud, including jail, fines, and licensing sanctions Goals include improving public awareness of insurance fraud, it s impact on the community and the potential penalties DIF now has funding for dedicated prosecutors in Miami, Broward, Palm Beach, Orlando, Tampa and Jacksonville

21 Fraud Rewards Anyone with information of suspected insurance fraud is asked to call Citizens who provide tips can remain anonymous. The Department of Financial Services to date has awarded almost $275,000 to more than 40 citizens as part of its Anti-Fraud Reward Program. The program rewards individuals up to $25,000 for information that directly leads to an arrest and conviction in an insurance fraud scheme. Florida has paid out more than $100,000 over the last few years Call toll free

22 Working with Other Agencies DIF has worked with each of the sister agencies present today There are restrictions on what we can do, and when we can do it and everyone needs to understand that Our investigations are criminal, and therefore confidential, and some aspects cannot be disclosed while the case is open / active We are here to assist with whatever we can Captain David Lindsay

Keeping your money in your pocket, where it belongs.

Keeping your money in your pocket, where it belongs. Captain David Lindsay 610 East Burgess Rd, Pensacola, Fl 32506 Phone: 850-453-7802 David.Lindsay@MyFloridaCFO.com Our Mission and Vision The Division