Florida DFS Adds More Property Insurance Fraud Investigators

Florida’s Department of Financial Services has added 13 employees, 10 of whom are sworn law enforcement officers, to investigate property insurance fraud in the state, Chief Financial Officer Jimmy Patronis said.

The squads were authorized by the Legislature last year. They are based in Tampa and Orlando but will have the authority to work with other law enforcement units and the insurance industry to investigate fraud cases around the state, according to a news release.

“I have directed these detectives to focus on significant cases involving organized schemes to defraud, multiple suspects or jurisdictions, contractor fraud, fictitious damage claims, inflated damage claims, and fraudulent water and roof damage claims,” Patronis said.

The CFO said curbing fraud by unscrupulous contractors, assignment-of-benefits abuse and other schemes is key to keeping insurance costs in check. The news release did not indicate how much funding would go to the new fraud units, or where the revenue will come from. It also did not say if the officers will investigate alleged fraud by public claims adjusters.

Public adjusters’ conflicts of interest and cooperation with a suspended attorney this year are something some in the insurance industry have raised concerns about. One investigation was voluntarily withdrawn by an insurance carrier this year and insurers have seen little action on another case.

Patronis noted that since 2017, the DFS fraud unit has made more than 4,500 fraud and arson-related arrests, resulting in more than $170 million in court-ordered restitution.

The department last week also announced the arrest of an alleged arsonist in Lakeland, Florida. Ashley Diedrichs was charged with burglarized then setting fire to a home. The DFS’ fire, arson and explosives investigative unit worked with Polk County fire authorities on the case.

If convicted, Diedrichs could face as much as 30 years in prison, Patronis said.

Topics Florida Fraud Property