Orlando Agent Barred by CFO Sink Found Guilty for Insurance Fraud Scheme
CONTACT: Kyra Jennings or Jennifer Hirst, 850-413-2842
TALLAHASSEE — Florida CFO Alex Sink today announced that an Orlando insurance agent she ordered barred for life from transacting insurance in Florida in August has been sentenced for third-degree felony grand theft after he submitted fraudulent insurance applications for family members and phantom employees in order to collect sales commissions. As part of his plea agreement, William Stanley Potocki, 44, was sentenced to 24 months of probation, 50 hours community service, and was ordered to pay more than $3,900 in restitution.
“Fraud doesn’t just hurt insurance companies, it inflicts real financial pain on families, businesses and communities because we all pay for fraud through higher insurance premiums,” said CFO Sink. “Our message is clear -- Florida will not tolerate fraud and if you attempt these types of scams you will be prosecuted. I also want to commend AFLAC for detecting and reporting this scheme.”
From November 2007 to February 2009, Potocki conducted business as an agent for American Family Life Assurance Company of Columbus (AFLAC) and provided insurance products to numerous businesses in Central Florida. An audit of his business records led the AFLAC compliance department to believe he was creating fraudulent insurance applications for family members and phantom employees of the companies he serviced. AFLAC‘s Special Investigative Unit referred the case to CFO Sink’s Division of Insurance Fraud for criminal investigation.
The Division of Insurance Fraud investigation confirmed that Potocki had submitted fraudulent insurance applications, and he was arrested on May 26, 2009. On August 24, 2009, the Division of Agent and Agency Services revoked the licenses of Potocki and his agency bearing his name, and permanently barred him from working in the insurance business in Florida.
DIF made over 800 insurance fraud-related arrests in the last fiscal year, and investigates various forms of insurance fraud relating to health, life, auto, property and workers’ compensation insurance policies. Depending on the estimated loss amount, the Department of Financial Services will pay up to $25,000 for information directly leading to an arrest and conviction. Anyone with information about this or any other suspected insurance fraud is asked to call CFO Sink’s Fraud Fighters Hotline at 1-800-378-0445 or visit www.MyFloridaCFO.com/fraud
As a statewide elected officer of the Florida Cabinet, CFO Alex Sink oversees the Department of Financial Services. A successful businesswoman with nearly three decades of experience in the private sector, Sink is serving her first term as Florida's CFO. As CFO, Sink's priorities include using her business experience to cut wasteful government spending, cracking down on financial and insurance fraud and reforming the state government's contracting practices.