Volume 2 Number 52 December 26, 2005

HAPPY NEW YEAR! The holiday season is a time for us to reflect on the many blessings in our lives, and with the New Year comes the promise of new opportunities – to lend a hand, to make a change, or to make a difference. Many Floridians who were impacted by another season of hurricanes have already experienced the joy, appreciation and even pride of helping their neighbors or being helped. One opportunity to lend a hand this season is for the Operation Lights for Life initiative that our state’s law enforcement is undertaking this Friday, December 30.  This initiative is focused on remembering those who were killed or injured in alcohol-related crashes in our state, and their surviving families; as well as pledging our continued commitment to rid Florida’s roadways of drunk drivers.  Let’s help those who are on the front lines of our communities ensure that the remaining holidays are safe for our families, friends and loved ones.   Best wishes for 2006!

GALLAGHER URGES FLORIDIANS IN HURRICANE-IMPACTED AREAS TO TAKE ADVANTAGE OF SPECIAL TAX RELIEF With the end of the 2005 tax season fast approaching, Tom Gallagher, Florida’s chief financial officer, encouraged Floridians impacted by this year’s hurricanes to take advantage of tax and time relief measures available.  “Many hurricane victims are still struggling to repair their homes and rebuild their lives,” said Gallagher.  “We want to get the word out that Floridians who were impacted by, or helped victims of, the 2005 storms may qualify for tax savings or obtain extensions for reporting and payment deadlines.” The Katrina Emergency Relief Act, effective Sept 23, 2005, postpones deadlines for storm victims to perform many time-sensitive acts until Feb. 28, 2006.  These include filing quarterly federal employment and excise tax returns, corporate estimated tax payments and individual estimated tax payments due to the Internal Revenue Service (IRS). CONTINUED

SOUTH FLORIDA AGENT ARRESTED FOR FRAUD AGAINST SENIORS Tom Gallagher, Florida’s chief financial officer, today announced that a South Florida insurance agent has been arrested for bilking elderly clients in an unregistered securities scheme. Thomas A. Masciarelli, 48, was arrested by state insurance fraud detectives, charged with three counts of grand theft and booked into the Palm Beach County Jail.  He allegedly stole some $300,000 from three investors – a 58-year-old woman supporting a disabled adult daughter, an 82-year-old woman with no family, and an 80-year-old man suffering from Parkinson’s disease.   Masciarelli could face up to 60 years in prison if convicted on the charges.  Gallagher has also filed an administrative complaint and is seeking revocation of the agent’s license. “We will not put up with Florida’s investors - particularly our vulnerable elderly investors - being preyed upon,” said Gallagher, who oversees the Department of Financial Services.  The department conducted the investigation along with the Office of Financial Regulation.  “We will hold this individual accountable for every victim he defrauded and every dime he stole.” CONTINUED

MIAMI MEN CHARGED WITH STEALING $1 MILLION IN MORTGAGE TRANSACTION SCHEME A Miami man is facing more than four dozen felony charges after surrendering Tuesday to insurance fraud detectives with the Department of Financial Services investigating the theft of nearly $1 million in a 2002 mortgage transaction.  The diversion led to foreclosure of a home and put a title company out of business.  A second man wanted on similar charges is now considered a fugitive. John S. Walters, 43, is charged with 52 separate counts of money laundering, organized scheme to defraud and first-degree grand theft, and potentially faces more than 700 years in prison if convicted on the charges.  He was booked into the Miami-Dade County Jail, and bond is set at $1 million.  Paul Allen Menzel, 49, is wanted on charges of organized scheme to defraud and first-degree grand theft. “These individuals’ actions caused serious financial and emotional devastation,” said Florida’s Chief Financial Officer Tom Gallagher, who oversees the department.  “What they did is unconscionable and calls for the maximum punishment afforded by law.” CONTINUED