Volume 1 Number 2
January 12, 2004








 

                   

 

 

 

 

 

 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

   

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CFO WARNS OF UNAUTHORIZED INSURANCE SCAM

Chief Financial Officer Tom Gallagher is warning that unauthorized entities have moved from selling bogus health and medical malpractice insurance plans to more specialized coverage. In December, a Fort Worth, Texas company was ordered to stop selling unauthorized surety bonds in Florida.

Global Bonding's activities were uncovered in an investigation that was prompted by a complaint from the Florida Department of Transportation (FDOT). In one transaction, Global sold more than $26 million worth of bonds to a Winter Haven construction company. The bonds were then presented to the FDOT to insure a Polk County construction project. 

The cease and desist order was also issued to Hexagon Consolidated Companies of America and Peeples Mining Company. These entities issued certificates claiming to back the bonds sold by Global.

More than 200 entities, marketing affiliates, agents and other individuals have been ordered to stop selling unauthorized coverage, which has left thousands of Floridians with unpaid claims since February 2001. For more than two years the department has conducted a statewide public education campaign urging Floridians to "verify before you buy." The message has been promoted on billboards, radio and television public service announcements, numerous newspaper and magazine articles, the department's web site and is included on press releases issued by the department.

To verify licensure, call the Department of Financial Services at     1-800-342-2762 or visit www.MyFloridaCFO.com.