NU Online News Service, Sept. 9, 3:00 p.m. EDT

Two executives of a now liquidated Miami-based insurance companyhave been arrested and charged with filing false or misleadingfinancial statements, said the Division of Insurance Fraud.

Luis M. Espinoza, former president and chief financial officerof First Commercial Insurance Company (FCIC), and Rene M. Cambert,former vice president and chief operating officer of the company,were charged with eight first-degree felony counts.

The former executives signed false financial statements--whichwere submitted to the Office of Insurance Regulation--thatmisrepresented the company's assets and surplus.

Mr. Espinoza and Mr. Cambert face up to 30 years in prison oneach count, said the office of Florida Chief Financial Officer AlexSink, whose Division of Financial Services oversees the insurancefraud unit.

Ms. Sink's office said it opened an investigation of FCIC and anaffiliated company, First Commercial Transportation and PropertyInsurance Company, when each was ordered into liquidation in Augustof last year. The CFO's office said it found FCIC sold more than2,000 auto service warranty policies that were not reflected intheir books, records and financial statements.

FCIC wrote workers' compensation, commercial auto, generalliability and commercial multiperil policies in Florida andGeorgia. Together the companies had about 18,000 policies inforce.

Ms. Sink said the Division of Insurance Fraud, Division of Agentand Agency Services, Division of Rehabilitation and Liquidation,and the Office of Insurance Regulation were involved in theinvestigation.

In 2009 FCIC reported a net loss of about $9.5 million and acombined ratio of 125.75, according to Highline Data, a part of SummitBusiness Media, which owns National Underwriter.