For years, fraudsters have been staging auto accidents, giving way to elaborate organized crime rings and singular scams designed to siphon dollars from insurers. Now others are orchestrating fire- and water-related damages in properties with the same intent: to defraud p&c insurers.

The growing incidence of these scams has led to the formation of multi-agency undercover operations, including “Operation Flames and Floods,” under which Florida authorities recently arrested 14 individuals.

Under Operation Flames and Floods, which began in November 2012, the Florida Fire Marshal’s Office and the Miami-Dade police department’s arson unit jointly investigated a series of suspicious fires. They later exposed an extensive scheme executed by multiple parties to defraud insurers by staging fire and water damage claims to residential homes in Miami-Dade County, Lehigh Acres and Naples, Florida. Fires were set to 13 homes, and five other residences incurred extensive water damage.

Insurance carriers paid $7.6 million for claims resulting from the fires, which were staged to resemble electrical, kitchen and vehicle-related fires occurring within the home or garage, while those involving water damage blamed flooding on water supply lines or clogged sewer lines.

Following a federal indictment, authorities arrested Jorge Fausto Espinosa Sr., a public adjuster. The remaining arrests in connection with this case occurred yesterday. A second public adjuster and a plumber were also among those apprehended and charged for allegedly instructing homeowners about how to file fraudulent insurance claims.

Upon their arrest, the following individuals were transported to Miami-Dade County Jail:

Carolina Esponosa (public Adjuster)
Roberto Suarez
Pedro H. Lezcano, Sr.
Argelio Menendez
Jesus Martinez
Lazaro Delgado
Liset Corrales
Francisco Pineiro-Gonzalez
Daniel Perez
Francisco Centurion
Abel Gutierrez
Daney Perez
Ernesto O’Reilly

As a result of the fraud, the following insurance carriers paid out millions in reported losses: American Integrity Insurance Company, American Bankers Insurance Company, Citizens Property Insurance Corporation, Northern Capital Insurance Company, Northern Point Insurance, Gulf Stream Property & Casualty, Southern Oak Insurance Company, State Farm, and Universal Property & Casualty. These cases are being prosecuted by Miami-Dade County State Attorney Katherine Fernandez Rundle.

“I am extremely proud of the work of our State Fire Marshall’s Office, and I am thankful for the support of the Miami-Dade Police Department’s Arson Unit and Miami-Dade County State Attorney Katherine Fernandez Rundle for helping us bring these individuals to justice," FLorida CFO Jeff Atwater said in a press release.

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'Operation Flames and Floods&rsquo; Exposes $7.6M in Property Damage Scams

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'Operation Flames and Floods’ Exposes $7.6M in Property Damage Scams