Fraud of the Week: Florida's Costliest Scams

Florida’s Department of Financial Services recently released its top 10 list of the most expensive insurance fraud scams from July 1, 2005- June 30, 2006, investigated by the Division of Insurance Fraud. The 10 cases totaled almost $15 million in fraud and more than 740 arrests. Among the scams are the following two cases:

Sing it From the Rooftop: A Louisiana roofing contractor who came to Florida to profit from hurricane-damaged homes in Central Florida didn’t do himself or his workers any favors. Todd Woods, owner of A-1 Construction, presented certificates of liability insurance to a local roofing contractor, the City of St. Cloud, and Osceola County, but when it was discovered the coverage was valid only in Louisiana, Woods leased five employees — including himself — through two employee leasing companies. However, during a local television interview Woods said he had brought several hundred workers to Florida. Woods was arrested for presenting false certificates of liability insurance (third-degree felony) and working without workers” compensation insurance (second-degree felony), and was ordered to participate in the Pre-Trial Diversion Program and pay a $10,000 fine and investigative costs.