Telling The Story
CONSUMER EXPERIENCES
Telling The Story - Consumer Experiences
Contractor solicitation fraud impacts both the insurance industry and consumers resulting in increased insurance rates, and lack of availability and affordability of insurance coverage. These stories are real examples from consumers who have experienced harmful consequences involving contractors. These examples will help to further illustrate the impact fraud has on consumers and the insurance market as a whole.
Unlicensed Contractor in Plantation
Pasco County Roofing Contractor Insurance Fraud Scheme
The Florida Department of Financial Services’ Criminal Investigations Division arrested John Sutton for allegedly conducting an unlicensed roof replacement scheme to defraud homeowners in Pasco County out of $41,552.61 in insurance claims. Mr. Sutton solicited roofing services to homeowners under the name Kaizen Construction Group.
Kaizen Construction Group went door to door soliciting business for roof replacements, instructing the homeowners on what to say to insurance companies to initiate the claims process. Once a claim was filed with the insurance company, Kaizen's salesmen would have the homeowners sign a “Direct to Pay” agreement, authorizing payment of the claim to go directly to the roofing company.
No construction permits were ever pulled to initiate or complete the roof replacements and it was discovered that neither John Sutton nor Kaizen Construction Group were properly licensed or insured to conduct roofing business in the State of Florida. John Sutton was arrested on charges including Filing a False and Fraudulent Insurance Claim, Grand Theft, Unlicensed Contracting, and Failure to Obtain Workers' Compensation coverage punishable up to 25
years in prison.
Naples Roofing Contractor Insurance Fraud Scheme
The Florida Department of Financial Services’ Criminal Investigations Division arrested two contractors in Naples for allegedly operating a solicitation scheme for free roof replacements related to damage supposedly caused by Hurricane Irma. Brian Webb and Brandon Jourdan of Webb Roofing & Construction LLC allegedly enticed homeowners with rebates to cover their insurance deductible if they submitted an insurance claim for a roof replacement. The company’s salespeople would require the homeowner to sign an Assignment of Benefits and an "advertising agreement," which allowed the company to place an advertising sign in their yard, and the homeowners were required to provide positive reviews online and give neighborhood referrals.
The contractors face nine counts of filing False & Fraudulent Insurance Claims, a third-degree felony, punishable up to 45 years in prison and a $45,000 fine.
To Report Suspected Fraud:
Fraud Tip Hotline - 1-800-378-0445
DFS Online Fraud Reporting Portal
Manatee County Unlicensed Contractor Sting
Eight contractors were caught working in Manatee County without the required contractor's license and doing construction work without having workers' compensation insurance, or a workers' compensation insurance exemption.
The eight individuals (Alberto Vega-Alvarez, Ryan Bogos, Thomas Yannotti, Julian Gubchak, Jeffrey Tenpenny, Luis Pineiro, Daniel Rotar, and Jamey Darnell) were arrested and face a total of 24 charges of Failure to Obtain Workers’ Compensation Coverage and Unlicensed Contracting. Each of the unlicensed contractors could face up to five years in prison if convicted on all charges.
These arrests were a result of joint sting operation conducted by the Department of Financial Services' (DFS) Criminal Investigations Division, Bureau of Workers’ Compensation Fraud along with the Manatee County Sheriff's Office, National Insurance Crime Bureau (NICB), and the Department of Business and Professional Regulation.
If you suspect a contractor is working without a license or without proper workers' compensation insurance, contact the DFS Fraud Hotline: 1-800-378-0445 or DFS Online Fraud Reporting Portal. Reports can be made anonymously.
LICENSE
Verify a contractor's license through the Florida Department of Business and Professional Regulation (DBPR):
INSURANCE
Verify that the contractor has either:
Incomplete Restoration Leaves Home Uninhabitable
The restoration company completely gutted their home, removing personal property, drywall, appliances and other fixtures. The restoration company did not complete the work and the home is uninhabitable. When the couple attempted to rescind the contract, the restoration company sent the couple an invoice totaling more than $99,000 and filed a lien against the property for nearly $100,000.
Homeowners Misled Into Fraudulent Insurance Schemes
LEE COUNTY SENIOR COMMUNITY ROOF CLAIMS
A fraud investigation involving a senior community in Lee County, 15 insurance companies, one contractor, one public adjuster and one attorney.
At least 11 roof claims were filed citing hurricane damage. Residents were promised a new roof with no out of pocket expenses if they signed a contract with the contractor, the public adjuster and the attorney and then they were coached on what to say to the insurance company adjuster.
32 CLAIMS FROM A SINGLE SOUTHWEST FLORIDA COMMUNITY
During a 4-week period, an insurance company received 32 claims from one Southwest Florida community. The claims included:
- 14 claims for hurricane damage
- 18 water damage claims for kitchen leaks and bathroom leaks
All of the claims were reported by the same law firm and the same public adjuster. Many of the homeowners stated they were unaware that they were hiring an attorney.
22 Assignment of Benefits (AOB)* were filed from the same water mitigation company and 21 AOBs were filed from the same mold testing company.
- 19 homes filed 32 individual claims
- 13 homes filed two claims
- 9 homes filed four AOBs each
Invoices that were submitted by the law firm, the water mitigation company and the mold testing company totaled more than $816,000.
* Any policy that was issued prior to January 1, 2023, provides a policyholder with the right to assign insurance benefits to a 3rd party as long as you have not chosen to give up that right in order to receive a premium discount.
Contact Your ICA
Florida's Insurance Consumer Advocate
Office of the Insurance Consumer Advocate
200 East Gaines Street, Tallahassee, FL 32399
Phone: (850) 413-5923
Email: YourFLVoice@MyFloridaCFO.com
