STATE FIRE MARSHAL’S OFFICE INVESTIGATION FINDS PRESENCE OF GASOLINE MAIN FACTOR IN MARGATE FIRE

Florida’s Chief Financial Officer and State Fire Marshal Tom Gallagher today issued a report that gasoline played a major role in a fire that destroyed part of a Margate apartment complex in March.  The State Fire Marshal’s Office was called to investigate because a man died in the fire.  Dozens of residents also were left homeless. 

“Our role at the State Fire Marshal’s Office is to determine the cause of the fire, and particularly to determine if arson is at play,” Gallagher said.  “Despite numerous and extensive tests, we could not conclude the actual ignition source of the fire, but we did conclude it was incendiary.” 

On March 13, a resident of Cross Creek Apartments, at 240 SW 56 Ave., barricaded himself in his apartment after allegedly firing several gunshots into the apartment of his ex-girlfriend in the same complex.  The Margate Police Department responded and called the Broward County Sheriff’s Office SWAT team for assistance.  The SWAT team fired four rounds of Flite-Rite tear gas containers into the man’s apartment, three of which entered the residence.   

The resident, Dan Lee Magno, was found dead in his apartment of a self-inflicted gunshot wound.  It was determined that he poured gasoline throughout the apartment, and gasoline was found on the couch and the clothes he was wearing. 

Investigators determined that gasoline was the main, if not the only, factor that caused the fire to ignite and burn so rapidly.  But, because of the extent of the damage, it could not be determined if the suspect set the fire prior to shooting himself. 

The investigation also looked at whether the Flite-Rite tear gas canisters could have sparked the fire.  According to the report, the objective of the battery of tests was “to determine if the Flite-Rite device could produce temperatures sufficient to either ignite or melt common combustible products normally found in a residence … to determine if the Flite-Rite device could act as an ignition source for gasoline vapors poured into a residence …to determine if the Flite-rite devices could produce chemical patterns consistent with those from gasoline.” 

The findings in the report state: “Observing each test and review of the data produced by these tests indicates that it is highly unlikely that a Flite-Rite projectile could cause an instantaneous fire in a room with a normal fuel load of common combustibles.  

The report on the tests of the Flite-Rite canisters is available at www.MyFloridaCFO.com/sfm. 

The Bureau of Fire and Arson Investigations is a law enforcement branch of the Division of State Fire Marshal that assists other state and local fire and law enforcement agencies in the investigation of fires of suspicious origin.  Anyone with information about this case or any incident of fire is asked to call 1-877-662-7766 (1-877-NOARSON).  

GALLAGHER APPLAUDS LAWMAKERS FOR LAYING THE GROUNDWORK FOR HURRICANE SAVINGS ACCOUNTS

Florida’s Chief Financial Officer Tom Gallagher today applauded state lawmakers for approving a measure that lays the groundwork for Floridians to set up hurricane savings accounts and protect these accounts from creditors.  Congress would now need to create the accounts under federal law and grant a tax-exempt designation.

“Hurricane savings accounts would give Floridians the opportunity to put money aside to prepare for the financial impact of a catastrophic storm,” said Gallagher, who initiated the idea with state lawmakers.  “I applaud the Legislature, especially Sen. Carlton and Rep. Altman, for setting the wheels in motion for Floridians to take advantage of these accounts.  The next step is to aggressively lobby Congress to act.” 

Gallagher met with several members of Florida’s congressional delegation in March to promote legislation in Congress creating Hurricane Savings Accounts.  Structured in the same manner as Health Savings Accounts and IRAs, a tax-free savings account could be opened to cover current and future hurricane-related expenses. The money deposited, as well as the interest earned, would be tax-deferred.  Unused balances would roll over from year-to-year. |

According to Gallagher, the ceiling on the accounts could be twice the amount of the individual’s deductible, and the money could only be withdrawn to cover qualified hurricane expenses tax-free. Qualified expenses would include: deductibles, uninsured losses such as docks, flood damage, and structural upgrades for future storms.

“As balances accumulate tax-free, consumers would also have the option to purchase higher deductible policies which would result in lower annual premiums,” Gallagher said. 

The legislation (Senate Bill 660), sponsored by Senator Lisa Carlton and Representative Thad Altman, adds hurricane savings accounts to the types of assets protected from creditors. Under the legislation, the amount that may be protected from creditors is limited to twice the deductible of a person’s homeowners’ insurance.

The bill now heads to the governor for signature. 
 

FLORIDA OFFICE OF INSURANCE REGULATION ANNOUNCES PUBLIC HEARINGS REGARDING SERVICE MOBILE HOMEOWNERS’ RATE REQUEST

CFO GALLAGHER COMMENDS LEGISLATURE

FOR PASSING NURSING HOME SPRINKLER BILL

Florida’s Chief Financial Officer and State Fire Marshal Tom Gallagher commended the Legislature for passing legislation to protect some of Florida’s most vulnerable citizens – the elderly.  Sponsored by Sen. Daniel Webster and Rep. John Stargel, the legislation requires all of the state’s nursing homes to have automated fire sprinkler systems by December 31, 2008.  The bill also establishes a loan guarantee program to help nursing homes defray the cost of installing sprinkler systems.

“This legislation will save lives.  Just in the last couple of weeks we saw firsthand how an automated sprinkler system can mean the difference between life and death,” Gallagher said, referring to an April 24 fire at the Palm Terrace of Lakeland nursing home.  One resident died in the fire, but fire officials credited a sprinkler system with saving many other lives.  There were 167 patients in the facility at the time of the fire.

The legislation, House Bill 1267, heads to Governor Bush for his consideration.  If signed, a loan guarantee program would be available to the estimated 35 nursing homes, mostly older facilities, which currently are not protected by any kind of sprinkler system. 

“Nursing home residents are least able to help themselves, and the Legislature has acted with these residents’ special needs in mind,” Gallagher said.  “I commend all of the legislators who voted for this bill, and I especially thank Senator Webster and Representative Stargel for their commitment and dedication to getting this legislation through.”

The nursing homes without fire sprinkler systems represent 4,200 beds, but regulators have estimated that there could be as many as 5,000 unprotected nursing home beds.  This represents about 5 percent of Florida’s nursing home beds.

SARASOTA ATTORNEY CHARGED WITH INSURANCE FRAUD

An attorney is facing an insurance fraud charge after state fraud investigators documented that he had continued to work while collecting more than $130,000 in disability benefits.

Peter W. Martin, 58, surrendered on the charge Wednesday afternoon at the Sarasota County Jail and was released on a $2,500 bond.  The charge was based on an investigation by the Department of Financial Services, Division of Insurance Fraud.  If convicted, Martin faces up to 15 years in prison in addition to fines and restitution.

“Insurance fraud is wrong no matter who does it,” said Florida’s Chief Financial Officer Tom Gallagher, who oversees the Department of Financial Services.  “But it is particularly offensive when committed by someone who has sworn to uphold the law.”

The investigation, based on a referral from Northwestern Mutual Life Insurance Company, uncovered that Martin submitted false information on a disability claim.  Martin reported that, following a motor vehicle accident, he became partially disabled and that his condition deteriorated making him totally disabled in September of 2003.  Fraud investigators found that Martin had continued to practice law in Florida as well as New York while he was collecting disability benefits from July 2003 through February 2004.

The Department of Financial Services, Division of Insurance Fraud, investigates various forms of fraud in insurance, including health, life, auto, property and workers' compensation insurance.  Anyone with information about this case or another possible fraud scheme should call the department's Fraud Hotline at 1-800-378-0445.  A reward of up to $25,000 may be offered for information leading to an arrest and conviction.

RESOLUTION FROM THE BUREAU OF COLLATERAL MANAGEMENT, DIVISION OF TREASURY, DEPARTMENT OF FINANCIAL SERVICES TO CFO GALLAGHER

WHEREAS, the Chief Financial Officer (CFO) acts as the State of Florida’s financial watchdog, serving as the State Fire Marshal, administrator of the Deferred Compensation plan for employees of the State of Florida and the Florida Security for Public Deposits Act; and

WHEREAS, the CFO is also responsible for administering the receipt and disbursement of state moneys, the investment of excess funds, and the maintenance of regulatory collateral deposits; and

WHEREAS, the mission statement of the Department of Financial Services declares “To Serve the Citizens of Florida by Ensuring Fiscal Accountability, Enhancing Fire Safety Services, and Protecting and Assisting All Insurance and Financial Consumers”; and

WHEREAS, the CFO is directly responsible for 7 billion dollars in regulatory collateral deposits and protecting 9 billion dollars of the public’s deposits; and

WHEREAS, the CFO provided the environment to reorganize, redirect and reengineer the business processes that oversee the regulatory collateral deposits under his authority; and

WHEREAS, the CFO provided the funding source for the successful implementation of the reengineered technology solution through the Aspire-Collateral Administration Program for the regulatory collateral deposits; and

WHEREAS, the Collateral Administration Program has successfully increased efficiency, reduced costs, enhanced customer service and is poised to become nationally recognized for improving service delivery. 

NOW, THEREFORE, BE IT RESOLVED that the Bureau of Collateral Management, Division of Treasury, Department of Financial Services to hereby recognize and commend

for his outstanding contributions and commitment to Florida through creative support of the Collateral Administration Program and all divisions and division staff in their pursuit of the mission of the Department of Financial Services.

IN TESTIMONY WHEREOF, the Collateral Administration Program Project Staff have hereunto subscribed their names and have caused the Official Seal of the Bureau of Collateral Management to be hereunto affixed in the City of Tallahassee on this 21^st day of April, 2005.

Rebecca Priddle, Financial Administrator, Project Manager

Brenda Chukes, Financial Analyst Supervisor, Collateral Administration

Kenneth Lee, Financial Analyst Supervisor, Program Administration

Ernie Domondon Jr., Financial Analyst II, Collateral Cash Management

Terry Wile, Financial Analyst II, Collateral Account Management

Cheryl Carter, Accountant III, Collateral Transaction Management