The Department of Financial Services is participating in several events around the state in recognition of “Cover the Uninsured Week,” according to Florida’s Chief Financial Officer Tom Gallagher. Gallagher also highlighted new legislation recently passed that will help reduce the costs of coverage and make health insurance more available for Floridians, especially small businesses.

“Covering the more than two million uninsured Floridians is an important challenge for state leaders,” said Gallagher, who served as co-chair of the governor’s task force on health insurance, which made recommendations to lawmakers. “I applaud legislators for taking steps this year to provide more and better access to health insurance coverage for Floridians and their families.”

According to Gallagher, the legislation would make it easier for small businesses to provide coverage to employees and provide increased protections for consumers purchasing “medical discount card” plans for health services and prescription drugs.
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CFO GALLAGHER ATTENDS LAW ENFORCEMENT MEMORIAL SERVICE

Florida’s Chief Financial Officer Tom Gallagher joined law enforcement officers from around the state at the 22^nd Annual Law Enforcement Officers Memorial Service. The event is a precursor to Law Enforcement Officer Memorial Week, May 14-20.

Hundreds of law enforcement officers packed into the plaza near the Old Capitol in Tallahassee on May 10th to honor officers who have died in the line of duty.

“Every law enforcement officer makes a conscious decision every day he or she leaves for work to accept the risks involved,” Gallagher said.  “For that reason I am deeply honored to take part in this annual program to remember them and their families.”

As CFO, Gallagher oversees the Department of Financial Services, which includes two fully-sworn law enforcement units --- the Bureau of Fire and Arson Investigations, which investigates fires of suspicious origin, and the Division of Insurance Fraud, which investigates fraud in all lines of insurance.

FLORIDA HOMEOWNERS TO RECEIVE REFUNDS IN $1.65 MILLION SETTLEMENT WITH MORTGAGE-SERVICING COMPANY

State officials announced today that nearly 40,000 Florida homeowners will get refunds for fees improperly charged by Fairbanks Capital Corporation.  The Utah-based mortgage-servicing company was ordered to pay $1.65 million in refunds under a settlement with the Economic Crimes Division of the Office of the Attorney General and the Office of Financial Regulation, part of the Florida Department of Financial Services.

The settlement follows an extensive review of Fairbanks' records by state examiners.  The state alleges that the company was making improper charges, including fees for releasing borrowers from mortgages that were paid off and unwarranted payments for appraisals.

In the settlement, Fairbanks also agrees to improve customer-service procedures, stop charging unjustified late fees and establish proper procedures to prevent unwarranted lender-placed insurance.   CONTINUED

Federal and state regulators stepped in to shut down and suspend the license of the nation’s largest viatical settlement company, Mutual Benefits Corporation, for violations of Florida and federal laws involving securities violations, fraud and misrepresentation. 

The action follows lengthy investigations by the Florida Office of Insurance Regulation (OIR) and the Securities and Exchange Commission (SEC).  OIR issued an order immediately suspending Mutual Benefits’ license to act as a viatical settlement provider in Florida.  Additionally, the U.S. District Court, for the Southern District of Florida, authorized the SEC to seize the assets of the Ft. Lauderdale-based company and place it in federal receivership. 

The Office of Statewide Prosecution has charged the company with racketeering and 15 counts of investor fraud based on an investigation by the Division of Insurance Fraud, housed in the Department of Financial Services.  CONTINUED

COLLECTION AGENCIES SCAM SETTLED

More than $100,000 in restitution available for victims

Attorney General Charlie Crist and Chief Financial Officer Tom Gallagher today announced the settlement of a case brought against two Jacksonville collection agencies and four individuals accused of deceptive business practices.

Alex Ruibal, Debbie Barrows, Aaron Manning and Kimberly Wilson, acting individually and on behalf of Barrows, Manning & Associates and Ditore, Ruibal & Associates, allegedly impersonated law enforcement officers and falsely threatened criminal charges in order to scam debtors into sending payment.  Representatives of the companies made these calls knowing that no actions, civil or criminal, would ever be brought against any of the victims.

The settlement is the result of a joint investigation conducted by the Economic Crimes Division of the Office of the Attorney General and the Office of Financial Regulation (OFR), part of the Florida Department of Financial Services.

“All Floridians, regardless of their financial situation, deserve to be treated fairly and with respect,” said Gallagher, who oversees the Florida Department of Financial Services.  “Agencies that use misleading and abusive practices will not be tolerated.”
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