Florida CFO JeffAtwater today announced the arrest of an Oviedo business ownerfor over-billing State Farm Insurance Co.for fraudulent sinkholeclaim repairs. Michael Hodge, owner of A&M Contracting Co., ischarged with multiple counts of racketeering and insurance fraudinvolving billings of materials he never used to repair propertiesin Orange, Seminole and Volusia counties.

“This case is a perfect example of the type of insurance fraudthat drives up insurance rates across the state for hard-workingFloridians,” says Atwater. “We must remain diligent in rooting outthese fraudsters to protect Florida homeowners and the honestbusinesses operating in our state.”

An investigation by the Florida Department of FinancialServices, Division of Insurance Fraud, revealed that from 2004 to2009 A&M Contracting over-billed State Farm for grout that wasnever used to repair sinkhole damage to properties in the CentralFlorida area. It was later discovered that Hodge received nearly$182,000 in compensation for materials which he never purchased orused to repair the properties. Hodge was arrested by frauddetectives on Aug. 12 and released after posting bail. Ifconvicted, he faces up to 25 years in prison.