A Florida man has been sentenced to 20 years in prison for his role in an arson insurance fraud scheme that spanned multiple Florida counties and was ordered to pay $1.9 million towards restitution to the more than 14 carriers affected, according to a statement from the Miami-Dade State Attorney Katherine Fernandez Rundle’s office.
Jorge Fausto Espinosa Sr., owner of the public adjuster company Nationwide Adjusters LLC, pled guilty last month to racketeering, racketeering conspiracy, organized scheme to defraud, and more than 28 counts of arson as well as multiple counts of insurance fraud and grand theft. He was sentenced by Judge Mark Blumstein to 20 years in state prison in addition to paying $1.9 million towards restitution.
Fausto Espinosa Sr. was one of many defendants originally charged in a series of collaborative investigations by the Miami-Dade State Attorney’s Office, State Fire Marshal Jimmy Patronis’ Bureau of Fire and Arson Investigations, and the Miami-Dade Police Department called Operation Flames and Flood I and Operation Flames and Flood II.
The investigations found that Espinosa intentionally set multiple homes on fire as well as caused water damage to other homes with the sole purpose of filing false and fraudulent insurance claims. The homeowners were recruited by Espinosa as part of his “Arson for Hire Scheme” involving homes in Miami-Dade, Lee and Collier County.
More than 14 insurance carriers, including Citizens, Tower Hill and United Property and Casualty, were impacted by the 50-plus false claims that cost insurers and policyholders more than $14 million in losses.
Representatives from the various defrauded insurance visited the state attorney’s office in Miami on May 29 to thank law enforcement and prosecutors for their work to bring down Espinosa’s fraudulent schemes and attend a ceremonial check presentation.
“Insurance policyholders were Espinosa’s real victims.Insurance fraud has never been a victimless crime since each policy holder pays the scammers via increased insurance premiums. Getting this restitution hits these criminals in a very sensitive spot, their wallet,” Fernandez Rundle said.
Source: Miami-Dade State Attorney’s Office
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