Volume 2 Number 47 November 21, 2005

Family and friends will gather this week to celebrate Thanksgiving. This traditional day in America is an opportunity to give thanks for all of the benefits of this land of plenty.  And this year, after eight hurricanes in 15 months, we also have a unique perspective for appreciating the generosity of the people of this country.    Many Floridians have recovered from the hurricanes of 2004 and 2005 with the help of others. Stories abound of people pitching in to help their neighbors put on new roofs or remove trees, or to just make sure their neighbors had the food, water and medicine they needed. And, when our neighbors along the Gulf Coast – many of whom responded in our hour of need -- needed us, we were there.  There is still much work to be done to finish the rebuilding of homes and lives, but it will happen.   I wish you all a safe, happy and joyous Thanksgiving, especially our troops overseas who are fighting to secure our right to celebrate our wonderful traditions.

GALLAGHER ANNOUNCES MULTIPLE ARRESTS FOR STAGED CRASH IN MIAMI Fraud ring billed more than $100,000 in fraudulent insurance claims Tom Gallagher, Florida’s chief financial officer, announced the arrests of eight members of an alleged staged crash ring accused of filing more than $100,000 in fraudulent insurance claims from a single staged accident. Brothers and suspected ringleaders Jimmy Desir, 27, and Nildo Desir, 29, planned and recruited the participants, according to detectives with the Department of Financial Services, Division of Insurance Fraud. All eight are charged with 13 counts each of insurance fraud and grand theft, and one already is facing a minimum sentence of two years in prison for a prior staged accident.  Three clinics were involved – including a chiropractor who was previously arrested for insurance fraud and grand theft. “Insurance fraud is saddling Florida families with hundreds of dollars in additional premium costs,” said Gallagher, who oversees the department.  “We will continue to aggressively pursue and prosecute those who commit fraud and work with the Legislature to develop hard-hitting laws to put these con artists behind bars.” CONTINUED

STATEMENT FROM CFO GALLAGHER ON NATIONAL CATASTROPHE FUND Over the years, I have advocated several federal and state solutions for avoiding an insurance market meltdown, including the creation of a National Catastrophe Fund. Recently Florida congressional members Ginny Brown-Waite and Clay Shaw introduced legislation to create such a fund. I applaud Congresswoman Ginny Brown-Waite and Congressman Clay Shaw for initiating legislation that I believe will provide greater support for American families devastated by disasters. I advocated the creation of a national fund following Hurricane Andrew in 1992. This year alone, our nation has suffered 43 federally declared disasters in 32 states including hurricanes in Florida, tornadoes in the Midwest and earthquakes in California. A national catastrophe fund is a sensible solution that Congress needs to pass. The federal legislation encourages states to establish catastrophic funds to prepare for natural disasters. States’ catastrophic funds would then be backed up by a federal fund named the Consumer Hurricane and Earthquake Protection Fund. The fund, administered by the U.S. Department of Treasury, would share the cost of catastrophic losses after states’ catastrophe funds had been exhausted.

FLORIDA SENIORS URGED TO BEWARE OF SCAMS WHEN CHOOSING NEW MEDICARE PRESCRIPTION COVERAGE One-Stop Shopping for Information and Resources Made Available  Florida seniors with Medicare Part A or Part B coverage may now purchase prescription drug coverage under Medicare Part D and choose from nearly 20 plans offering a mix of deductibles, co-payments and levels of coverage.    Tom Gallagher, Florida’s chief financial officer, reported that his department’s consumer helpline is getting calls from seniors looking for information on the new coverage.   Gallagher said he is concerned that scam artists may try to take advantage of seniors who are confused about their options and the enrollment process.  To assist seniors, Gallagher has created a free brochure that can be obtained by calling the Department of Financial Services at 1-800-342-2762 or by logging on to the department’s website at www.flseniors.net and click on “Medicare Rx Resources.”  “I am deeply concerned that scam artists will exploit seniors interested in new options under Medicare,” said Gallagher.  “We will aggressively pursue those who attempt to rip off the elderly.  A senior’s best defense against fraud is knowledge.” CONTINUED

ESSAY CONTEST SITE CLICK HERE FOR HTML OR FLASH VERSION

STATEWIDE ESSAY CONTEST  PROMOTES FINANCIAL EDUCATION AMONG TEENS Contest offers teens a chance to win up to $750 Florida’s Chief Financial Officer Tom Gallagher is encouraging teens to enter the essay contest aimed at encouraging investor education among middle and high school students in Florida.  The contest, “Cash in on Your Money Smarts,” offers teens a chance at more than $7,500 in prizes statewide, with a top individual award of $750 for one student in each of five geographic regions.  “This contest is an opportunity for Florida teens to be rewarded for their knowledge of smart investing and their persuasive writing skills,” said Gallagher.  “A lifetime of financial success can come from learning these valuable skills now.” Gallagher’s statewide public financial education initiative, Your Money, Your Life, is designed to help Floridians make better informed financial decisions.  Gallagher launched the program in 2004 after learning that many Floridians put themselves at financial risk by waiting too late to save and by running up debt.  The program includes a comprehensive educational website available at www.yourmoneyyourlife.org. CONTINUED

DON'T BELIEVE EVERYTHING YOU HEAR "Before you invest, investigate" was the slogan of the National Better Business Bureau back in 1929. The same concept applies today, 76 years later. Here are some vintage financial observations that can help you avoid becoming a victim of financial fraud. Big returns — It is always easy for investment promoters to boast that an investment will provide higher-than-average dividends or market profits. However, the heavy risks associated with these abnormal returns are not always revealed. Promises of high returns may be "the chief talking points of financial charlatans."  CONTINUED