Property insurance fraud driving up premiums, Florida CFO Jimmy Patronis says

TAMPA, Fla. (WFLA) — As Florida owners proceed to take care of skyrocketing owners insurance coverage costs, Florida’s chief monetary officer says it’s fraud that’s driving up insurance coverage premiums.

CFO Jimmy Patronis, who’s liable for tackling fraud, stood beside Residents Property Insurance coverage CEO Barry Gilway in Tampa on Thursday as they introduced how they foiled one scheme.

A lawsuit outlines the alleged crimes dedicated in opposition to us all. They are saying it’s began in 2014. Now, eight years later, there’s a civil settlement however nobody has been held criminally accountable.

“We shut the mechanism down strong,” mentioned Gilway.

Eight years in the past, Gilway says he seen lawyer Scot Strems and some contractors had been manufacturing claims – 600 claims a 12 months.

In line with CFO Patronis, the suspected fraud was costing taxpayers $16 million yearly. Fed up, the insurance coverage firm, appearing alone, filed a civil swimsuit alleging racketeering in June of 2020.

“And what number of claims did we get final 12 months? Zero,” mentioned Gilway. “Belief me, it’s not a free roof, you might be paying on your neighbors roof, in lots of many circumstances.”

Gilway says Mr. Strems denied wrongdoing. However the Florida Supreme Courtroom suspended his license for 2 years. In March, Strems and his co-defendants agreed to a $1 million settlement.

“For this reason your insurance coverage charges are going up,” mentioned CFO Patronis. “Bear in mind, that is fraud, it is a crime.”

So is anybody getting charged in reference to this alleged ring of fraud? Patronis is liable for investigating fraud, and referring circumstances to prosecutors.

“Yearly that I’ve been in workplace, about 5 years now, we have now had 3,500-odd arrests, however that goes throughout auto insurance coverage, medical health insurance,” mentioned Patronis.

Patronis says, throughout his time as CFO, 148 have been convicted for property insurance coverage fraud; and the felony investigation into this alleged ring continues.

8 On Your Aspect requested if the CFO’s workplace wants assist from federal regulation enforcement.

“You realize I’m positive in some unspecified time in the future there may very well be a multi-state jurisdiction concern over this however I feel the women and men we have now listed here are geared up to do it,” he mentioned. “However do we’d like extra boots on the bottom, positive.”

On the particular session later this month, Patronis will ask lawmakers for extra assets. 8 On Your Aspect might be there to cowl it.

Within the meantime, Residents says they referred 400 circumstances from the alleged ring to the CFO.