Fla. Scheme Misappropriated $845,000 in Boat Premiums

John Paul Castagna, 46, the owner of Castagna Specialty Risk, with offices in Deerfield Beach, Fla. has been apprehended by the Department of Financial Services Division of Insurance Fraud for allegedly stealing more than $845,000 in insurance premiums he received from 17 local victims who intended to buy boat insurance. According to Tom Gallagher, Florida’s CFO, Castagna could face up to 180 years in prison.

Castagna Specialty Risk was formerly located at 201 N. Federal Highway, Suite 111 and 265 S. Federal Highway, Suite 342. He was booked into the Broward County Jail on charges of misappropriation of insurance premium, two counts of grand theft in the first degree, four counts of grand theft in the second degree, and six counts of grand theft in the third degree. Bond was set at $48,500.

The investigation determined that, from November 2001 through April 2004, Castagna engaged in an ongoing scheme wherein he accepted insurance premiums for marine insurance from insurance agents and did not forward the premiums to the insurance companies. In each instance, detectives said, Castagna received the insurance premiums from the agents and deposited the funds into his bank account. The charges against Castagna are based on local victims, including customers, insurance companies, insurance agents and finance companies.

The department’s Division of Agent and Agency Services, Bureau of Investigation, revoked Castagna’s agent license last year and referred the case to the Division of Insurance Fraud for criminal investigation. The Broward County State Attorney’s Office is prosecuting the charges.

Topics Agencies