This week, the Department of Financial Services’
Division of Insurance Fraud (DIF) made several arrests, including a husband and wife
accused of stealing nearly $8 million from escrow funds held by their title
agency. An article inside this week’s edition of eViews provides details of
the arrests, including how the investigation revealed the couple allegedly
used the funds to supplement a lavish lifestyle.
While every insurance fraud case is different, what never varies is that
fraud hurts real people and real businesses and ultimately costs us all. So
when we make arrests and hold those who commit insurance fraud accountable,
we send a strong message that we will not tolerate anyone taking advantage
of Floridians.
Detective Henry Thomas Clark, a longtime investigator with DIF, this week
was awarded the International Association of Special Investigation Units’
2007 Public Service Award. Detective Clark was
chosen for the award based on one particular case that has resulted in
numerous arrests, indictments and convictions in a $200 million workers’
compensation fraud scheme that left thousands of workers in Florida and
across the nation without coverage for on-the-job injuries and families
without death benefits.
We congratulate Detective Clark and thank
every employee and agency who works with us to protect and serve
Floridians.
CFO ADDRESSES THE CHAMBER OF SOUTHWEST
FLORIDA
On Wednesday,
September 12, 2007, Florida Chief Financial Officer Alex Sink spoke to
members of the Chamber of Southwest Florida, addressing the upcoming
expiration of Florida’s Motor
Vehicle No-Fault Law, property insurance and property taxes. The CFO also
discussed that most homeowners receiving free wind inspections from the My
Safe Florida Home program are learning that they are eligible for savings on
their wind insurance premiums. In Lee County alone, homeowners were
eligible to save an average of $236 a year, without completing any
mitigation efforts on their homes.
CFO SINK ANNOUNCES MY SAFE FLORIDA HOME
FAIR TO BE HELD IN PENSACOLA SATURDAY
Florida Chief Financial Officer Alex Sink announced the My Safe Florida Home
(MSFH) program is partnering with Escambia County non-profit organizations
and businesses to hold a fair designed to raise awareness about the safety
and financial incentives of mitigation.
The MSFH fair will take place at the Pensacola Civic Center on September 15,
2007, from 10:00 a.m. to 4:00 p.m. CFO Sink is hosting the fair with the
Escambia County Commission, Gulf Power Corporation and WEAR-TV. More than 50
hurricane-preparedness exhibits will be on display at the fair, and all
exhibits and workshops are free to the public.
“We are taking the My Safe Florida Home program on the road to educate
Florida homeowners about the importance of mitigation,” said CFO Sink who
oversees the Department of Financial Services. “I encourage every homeowner
in Northwest Florida to apply for their free wind inspection and see if they
are eligible for discounts on their windstorm insurance.”
Representatives from the MSFH program will be on hand to sign up eligible
homeowners for their free wind inspections. Last week, CFO Sink reported
that nearly 75 percent of homeowners who have received inspections from the
MSFH program have learned they are eligible for a discount of 16.3 percent
on their wind insurance premiums. Savings vary by region, and through the
program, 1,652 Escambia County residents have learned they are eligible to
receive an average windstorm insurance discount of 20 percent or $253.66
annually.
Insurance company representatives will also be at the fair to assist
homeowners in understanding which hurricane-resistance measures will best
protect their homes and how policyholders can apply for discounts on their
insurance premiums. By law, insurance companies are required to offer
policyholders discounts on the wind-coverage portion of their homeowner
policy premiums for specific measures that reduce their homes’ exposure to
windstorm damage. Homeowners are encouraged to bring insurance documentation
to obtain information on possible insurance savings through the program.
To date, the MSFH program has completed more than 90,000 free wind
inspections. More than 109,000 Florida homeowners have signed up for free
wind inspections through the program, signifying the program has exceeded 25
percent of its long-term goal of 400,000 free wind inspections in the next
two years. More than 9,500 homeowners statewide have been approved to
receive matching grants to make the improvements recommended on their
inspection reports. To date, more than 1,000 homeowners have received
matching grants totaling more than $3.1 million.
Any Floridian who lives in a single-family, site-built home is eligible for
a free wind inspection through the MSFH program, which helps Floridians
identify how they can strengthen their homes and reduces the overall
potential for hurricane damage in our state. Floridians can apply on-line at
www.MySafeFloridaHome.com or by calling the program toll-free at
1-866-513-6734. Homeowners who receive free wind inspections through the
MSFH program will receive a detailed inspection report, complete with
additional information on estimated insurance premium discounts, if
insurance information is provided at the time they applied.
Additionally, some Florida homeowners receiving free wind inspections may be
eligible for matching grant reimbursements of up to $5,000 to make
recommended improvements. To be eligible, the Legislature requires that
homeowners: have received a completed wind inspection after May 1, 2007;
live in a single-family, site-built home built before March 1, 2002; have a
valid homestead exemption; have an insured value of $300,000 or less; and be
located in the wind-borne debris region. Additionally, while the free wind
inspections will still cover seven potential wind-resistance improvements,
matching grants may only be applied to opening protections, including
windows, exterior doors and garage doors, as well as the bracing of gable
ends.
CAPITOL AND STATE FIRE COLLEGE REMEMBER SEPTEMBER 11, 2001
In tribute to the fallen of September 11, 2001, a bagpiper played
Amazing Grace, a brass bell tolled and firefighters honored the flag.
Governor Crist, Lt. Governor Kottkamp and the members of the Florida Cabinet
paid their respects in memory of the event of six years ago.
At the State Fire College in Ocala, at 9:59 on Tuesday,
September 11, 2007, the apparatus bell sounded 5 gongs, a short pause, then
5 more; another pause, 5 more, pause, and another 5 and then it fell silent.
Staff and students at the Florida State Fire College gathered at the State
Fallen Firefighter Memorial in the center of campus to honor those FDNY
firefighters that lost their lives in the 9/11 attack on the World Trade
Center (WTC). 2007 marks the 6th anniversary of the loss.
Dave Casey, Bureau Chief at the Fire College explained to those gathered the
significance of the bells. In the 1800s, fire stations were notified of
calls by way of a telegraph call box. When the box handle was pulled, it
would tap out the number of the box in the fire station. The response would
be to that box. In FDNY, the most dreaded code to hear from a fire scene was
5-5-5-5 because it meant a firefighter had died on that scene.
9:59 A.M. was the time of the collapse of the south WTC tower. 5-5-5-5 was
rung out for box 8087 that served the World Trade Center. We shall never
forget the 343 firefighters or the 2,252 other citizens that lost their
lives that day. 2,596 lives were more than the loss of life during the
attack on Pearl Harbor.
The duty of ringing the bell went to Walt Malo, Safety Program Manager at
the Fire College. Walt said, “It was an honor to be able to remember those
that sacrificed so much on that September morning”.
MISTY JOINS THE STATE
FIRE MARSHAL TEAM
After the
retirement of K-9 Xena by Lt. Eric Saccasyn, the bureau selected Detective
Mike Douglas to receive training and a replacement canine. Detective Douglas
and his new partner "Misty" were certified by the Maine State Police as an
accelerant detection canine team. State Farm funded the training and
expenses.
On September 13th, their 4th day in service, Douglas and Misty were
investigated a vehicle fire at 114 Marjorie St in Auburndale. The team
determined the fire to be incendiary and made their first arrests as a team.
Congratulations to Mike and Misty on their first successful criminal
investigation and apprehension. Misty has some big shoes to fill with Xena
monitoring from retirement but this first assignment is a good indication
that she is well on her way to success.
CFO SINK ANNOUNCES ARRESTS IN $8 MILLION ESCROW THEFT
NEW PORT RICHEY—Florida Chief Financial Officer Alex Sink announced today
the arrests of a husband and wife on multiple counts of theft of escrow
funds and money laundering for allegedly stealing nearly $8 million from
their title company escrow accounts.
The charges against John T. Wehlau, 43, and Cheryl T. Wehlau, 41, owners and
operators of Gulf Coast Title Closings & Escrow Services in New Port Richey,
are the result of an investigation by the Department of Financial Services’
Division of Insurance Fraud (DIF), a statewide law enforcement agency that
investigates insurance fraud. The primary victim, Commonwealth Land Title
Insurance Company, covered hundreds of homebuyers’ missing funds.
“Fraud hurts all Floridians and our economy by artificially driving up costs
that are passed on to all consumers,” said CFO Sink, who oversees the
department. “We will protect our citizens by rooting out these costly crimes
and holding those involved accountable.”
The Wehlaus are charged with 21 counts of theft of escrow funds, three
counts of money laundering and one count of grand theft. The couple was
arrested Thursday at their New Port Richey home and booked into the Pasco
County Jail. Bond was set for each at $5 million, $200,000 for each charge
filed against them. If convicted on all of the charges, they could face a
sentence of up to 30 years in prison on each count.
Detective Steven Firestone, DIF’s lead investigator in the case, said the
investigation revealed that the alleged thefts of escrow funds began around
January 2004 and consisted of 21 documented defalcation transactions of over
$100,000, and that the defalcations, or thefts, were documented to have
increased in amounts through October 2006. These alleged thefts ceased only
when an audit revealed a drastic shortfall in Gulf Coast’s escrow accounts
and Commonwealth Land Title Insurance Company stopped Gulf Coast’s business
in early January 2006.
The Civil Court of the 6th Judicial Circuit, Civil Division, ordered a
receiver appointed on January 19, 2006, to take over the company and wind
down Gulf Coast Title Closings & Escrow Services, Inc. At the time of the
audit, the escrow accounts held more than $9.4 million in escrow monies. The
receiver found only $1.5 million in Gulf Coast’s accounts, including their
escrow accounts and operating accounts, and found more than $7.9 million
missing.
The investigation indicated that the Wehlaus allegedly used the money to
fund a lavish lifestyle, including the purchase of a $1.3 million dollar
home using $390,000 in misappropriated funds from the Gulf Coast escrow
account as a down payment, and a $271,000 condominium for their daughter
paid in cash. Other purchases included vehicles, trips, a single monthly
American Express bill of more than $72,000, a single $3,200 Ruth’s Chris
Steakhouse dinner bill and other personal expenses that allegedly were
documented as funded via stolen escrow monies.
These charges will be prosecuted in Pinellas County by Attorney General Bill
McCollum’s Office of Statewide Prosecution. The department anticipates
filing action against the Wehlaus’ title agency license in the next few
days.
The Department of Financial Services, Division of Insurance Fraud,
investigates fraud in all types of insurance, including health, life, auto,
property and workers’ compensation. To report information about this case or
any other possible insurance fraud case, call the department’s Fraud
Fighters hotline at 1-800-378-0445. A reward of up to $25,000 may be offered
for information leading to a conviction.
SENATOR GELLER DELIVERS $5,000 CHECK FROM
THE MY SAFE FLORIDA HOME PROGRAM TO FT. LAUDERDALE RESIDENT TUESDAY
Sink urging more Broward County residents to sign up at
www.MySafeFloridaHome.com
On behalf of Florida Chief Financial Officer Alex Sink and the My Safe
Florida Home (MSFH) program, Senator Steve Geller (D-Hallandale Beach)
personally delivered a matching grant reimbursement for $5,000 to a Ft.
Lauderdale homeowner who hardened his home through the state’s MSFH program.
“Mitigation is the best way to protect your home, it will reduce the state’s
exposure to hurricane damage and it can result in savings on your wind
insurance premium,” said CFO Sink, who oversees the Department of Financial
Services. “I encourage more Floridians to follow Mr. Lyden’s lead and sign
up for free wind inspections through the My Safe Florida Home program.”
Daniel Lyden, a 45-year-old system engineer from Ft. Lauderdale, received a
grant reimbursement Tuesday after hardening his home’s opening protections.
After having his home inspected by a MSFH inspector, Lyden received a report
indicating that the addition of impact-resistant windows and doors would
help harden his home to hurricanes. With the program’s matching grant
reimbursement of up to $5,000, Lyden was able to harden his windows and
doors for a total cost of about $25,000.
“Hurricane insurance rates in Florida remain unacceptably high,” said Sen.
Geller. “The total exposure to hurricane damage in this state remains too
high. The best way to reduce the statewide problem and reduce your
individual rates is this type of mitigation to reduce or prevent future
damages.”
The MSFH program resumed offering wind inspections and expanded statewide
this year after conducting a pilot program during the previous year. Since
April 2007, the MSFH program has performed over 86,000 free wind
inspections. More than 9,512 homeowners have been approved for matching
grants and are working with the MSFH program to harden their homes.
Statewide, the program has issued a grand total of more than 1,010 grants to
homeowners for more than $3.1 million.
To date, the program has reimbursed 183 homeowners in Broward County for a
total of $614,549.36. Currently there are 2,834 homeowners in Broward County
hardening their homes through the MSFH program. These homeowners are being
reimbursed for half the cost up to $5,000 on a variety of home improvements,
including hurricane shutters, reinforced garage doors and bracing gable
ends.
MSFH also partners with the Volunteer Florida Foundation (VFF) to provide
mitigation, at no cost, to the homes of lower-income Floridians (those
earning 80 percent or less than the Area Median Income.) To date, VFF has
completed work on 623 homes in Florida, 53 of those homes are located in
Broward County.
Any Floridian who lives in a single-family, site-built home is eligible for
a free wind inspection through the program. Floridians can apply on-line at
www.MySafeFloridaHome.com or by calling the program toll-free at
1-866-513-6734. Homeowners who receive free wind inspections through the
MSFH program will receive a detailed inspection report, complete with
additional eligibility information on matching grants and estimated
insurance premium discounts, if the homeowner is eligible.
In order to be eligible for the program’s matching grant reimbursements of
up to $5,000, the Legislature requires that homeowners meet the following
requirements: have received a completed wind inspection after May 1, 2007;
live in a single-family, site-built home built before March 1, 2002; have a
valid homestead exemption; have an insured value of $300,000 or less; and be
located in the wind-borne debris region.
Additionally, while the free wind inspections will still cover seven
potential wind-resistance improvements, matching grants may only be applied
to opening protections, including windows, exterior doors and garage doors,
as well as the bracing of gable ends.
REP. TAYLOR DELIVERS
$5,000 CHECK FROM THE MY SAFE FLORIDA HOME PROGRAM
TO RIVIERA BEACH HOMEOWNERS WEDNESDAY
CFO Sink urging more
Palm Beach County residents to sign up at
www.MySafeFloridaHome.com
On behalf of Florida
Chief Financial Officer Alex Sink and the My Safe
Florida Home (MSFH) program, Representative
Priscilla Taylor (D-Riviera Beach) personally
delivered a matching grant reimbursement for $5,000
to a Riviera Beach couple who hardened their home
through the state’s MSFH program.
“Mitigation is the best way to protect your home, it
will reduce the state’s exposure to hurricane damage
and it can result in savings on your wind insurance
premium,” said CFO Sink, who oversees the Department
of Financial Services. “I encourage more Floridians
to follow Mr. and Mrs. Sayles’ lead to sign up for
free wind inspections through the My Safe Florida
Home program.”
John (52) and Donna (47) Sayles, of Riviera Beach,
received a grant reimbursement Wednesday after
hardening their home’s opening protections. After
having their home inspected by a MSFH inspector, the
Sayles received a report indicating that the
addition of accordion shutters to their windows,
replacing the garage door with a Miami-Dade-rated
garage door, and hardening their front and rear door
would help harden their home to hurricanes. With
the program’s matching grant reimbursement of up to
$5,000, the Sayles were able to afford hardening
their home for a total cost of about $14,000.
“I
feel that the My Safe Florida Home program is a
great benefit to the people here in Palm Beach
County, but it is not being utilized enough,” said
Rep. Taylor. “We need to get the word out so that
more people can take advantage of the program.”
The
MSFH program resumed offering wind inspections and
expanded statewide this year after conducting a
pilot program during the previous year in 2006.
Since April 2007, the MSFH program has performed
over 90,000 free wind inspections. More than 9,512
homeowners have been approved for matching grants
and are working with the MSFH program to harden
their homes. Statewide, the program has issued a
grand total of 1,010 grants to homeowners for more
than $3.1 million.
To
date, the program has reimbursed 166 homeowners in
Palm Beach County for a total of $481,814.
Currently there are, 2,011 homeowners in Palm Beach
County hardening their homes through the MSFH
program. These homeowners are being reimbursed for
half the cost up to $5,000 on a variety of home
improvements, including hurricane shutters,
reinforced garage doors and bracing gable ends.
MSFH also partners with the Volunteer Florida
Foundation (VFF) to provide mitigation, at no cost,
to the homes of lower-income Floridians (those
earning 80 percent or less than the Area Median
Income.) To date, VFF has completed work on 623
homes in Florida, 50 of those homes are located in
Palm Beach County.
Any
Floridian who lives in a single-family, site-built
home is eligible for a free wind inspection through
the program. Floridians can apply on-line at
www.MySafeFloridaHome.com or by calling the program
toll-free at 1-866-513-6734. Homeowners who receive
free wind inspections through the MSFH program will
receive a detailed inspection report, complete with
additional eligibility information on matching
grants and estimated insurance premium discounts, if
the homeowner is eligible.
In
order to be eligible for the program’s matching
grant reimbursements of up to $5,000, the
Legislature requires that homeowners meet the
following requirements: have received a completed
wind inspection after May 1, 2007; live in a
single-family, site-built home built before March 1,
2002; have a valid homestead exemption; have an
insured value of $300,000 or less; and be located in
the wind-borne debris region.
Additionally, while the free wind inspections will
still cover seven potential wind-resistance
improvements, matching grants may only be applied to
opening protections, including windows, exterior
doors and garage doors, as well as the bracing of
gable ends.