Auto Insurance Fraud Strike Force
August 7, 2012
2:00 p.m., Room 110, Senate Office Building
Minutes
Meeting called to order shortly after 2:00 p.m. by Ashley Mayer, Director of Policy, Research &
Legislative Affairs. The meeting was late starting due to phone problems.
Strike Force members participating via conference call:
The Honorable Pete Antonacci
Mr. Alan Levine
Mr. Ed Zebersky
The Honorable Mark Ober
Chief Lisa Womack
Strike Force members participating in person:
Mr. Donovan Brown
Ms. Lauren Facemire
The Honorable Stephen Russell
Strike Force members not available for this meeting:
Mr. Kenneth Hazouri
Sheriff Rutherford
Ms. Mayer introduces CFO Atwater for welcome remarks.
CFO Atwater thanked everyone for accepting his invitation to serve on this Strike Force and
explains that the meeting was intended to be organizational in nature to get the group
underway; i.e., the technical aspects that have to be taken care of to establish a business plan.
CFO Atwater reiterated the challenges facing Florida regarding PIP fraud, and that the focus is
for consumers of Florida to receive a good value proposition, a fair system, and insurance
coverage that is affordable to consumers.
One element of the new law is that the Division of Insurance Fraud (DIF) “may establish” a
direct-support organization, but the CFO explained that he did not want to wait another month,
and that DIF will move forward quickly.
CFO read from statute and stated the Strike Force is established “ to be operated to conduct
programs and activities; raise funds; request and receive grants, gifts, and bequests of money;
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acquire, receive, hold, invest, and administer, in its own name, securities, funds, objects of
value, or other property, real or personal; and make grants and expenditures to or for the direct
or indirect benefit of the division (DIF), state attorneys’ offices, the statewide prosecutor, the
Agency for Health Care Administration, and the Department of Health to the extent that such
grants and expenditures are used exclusively to advance the prosecution, investigation, or
prevention of motor vehicle insurance fraud.”
The Strike Force can look forward to future meetings to address objectives that we can support
to reduce motor vehicle fraud. DIF will have the responsibility of educating the Strike Force of
changes in trends to best evaluate or identify resources that are for the purpose of helping the
group beat back the fraud while looking for educational value and identifying resources that
can be matched with the needs. CFO Atwater expressed that he is very excited to do our part
to assist with the statute and task assigned by the Legislature.
Ms. Mayer introduced Jacek Stramski, Assistant General Counsel, Department of Financial
Services (DFS), to provide brief overview of the statute and by-laws. Mr. Stramski explained the
provision in statute that establishes the structure of the Strike Force and how funds will be
handled.
Mr. Stramski briefly went through the sections of the draft contract. (refer to draft contract)
Mr. Stramski briefly explained the By-Laws of the Not-For-Profit Corporation as they were filed
with the Secretary of State. He further explained that an amended version may have to be filed
with the Secretary of State with reference to the Internal Revenue Code. (further explained by
Robert Blaesser later)
Ms. Mayer then introduced Jim Rhea, Director, Public Records Unit, DFS, to provide a brief
overview of the Florida Sunshine Law and public records requirements. Mr. Rhea described the
two parts of the Open Government law: access to public meetings and access to public records.
Following the explanation of public meetings and records, Mr. Rhea advised that the Strike
Force will need to designate who will be the records custodian. A PowerPoint presentation was
provided with detailed information on the Florida Sunshine Law.
At the conclusion of Mr. Rhea’s presentation, Ms. Mayer discussed the website for the Strike
Force (www.myfloridacfo.com/autofraud). On this website, all meeting materials,
presentations, agendas, and meeting minutes will be posted. The website is up and running.
The next presentation was by Robert Blaesser, Assistant General Counsel, DFS, regarding tax
compliance and tax-exempt status. The Strike Force still must take an affirmative status with
IRS. The Strike Force needs to retain a qualified tax advisor to review the By-Laws and Contract,
and then amend the Articles of Incorporation to comply with IRS 501C3 code as it relates to
charitable organizations. The Purpose Clause will need to be modified to specifically provide for
exempt services of the Strike Force; the Dissolution Clause will need to be modified to allow for
a transfer to another Non-profit organization at the point of dissolution. Page two of the “Life
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Cycle of a Public Charity” presentation document outlining the process was referred to as an
example.
The final presentation was offered by Dan Anderson, Director, DIF, DFS. Mr. Anderson talked
about what DIF can do to assist the Strike Force, and is excited to be working with Chairman
Peter Antonacci and this Strike Force. He referenced successes the investigators have had in
Palm Beach County regarding PIP fraud. Proceeding through the PowerPoint presentation, Mr.
Anderson explained a suggested spending plan to show where the funds could go to combat PIP
fraud. For example, there is a need for more designated prosecutors. Furthermore, the PIP
clinics are “enablers” as they relate to the commission of PIP fraud. Statistics from the DIF
database show DIF has received referrals from all over, but most specifically from insurance
companies. About 40% of investigations involve PIP fraud. Mr. Anderson said DIF will provide a
proposed grant application draft to the Strike Force for review and approval.
CFO Atwater introduced and named Peter Antonacci as the designated Chairman of the Strike
Force. The CFO thanked the staff of DIF and Dan Anderson for their commitment to put an end
to PIP fraud. Referring back to the statute and wisdom of the Legislature in designing the
participants of the Strike Force that all involved parties are represented. CFO Atwater stated
that the talents representing these groups are extraordinary. CFO then turned the meeting
over to Peter Antonacci.
Chairman Antonacci thanked CFO Atwater for his support and dedication in the fight against
auto insurance fraud. Chairman Antonacci proceeded to housekeeping matters:
Item of adopting By-Laws. Any question? None. Motion by Donovan Brown to adopt
the By-Laws; second by Steve Russell; adopted.
Item of adopting Contract. Any questions? None. Motion by Mark Ober to adopt the
Contract; second by Lauren Facemire; adopted.
According to the statute and By-Laws, additional officers are needed.
Donovan Brown as Vice-Chair. Any questions or others interested in serving in this
capacity? None. Motion by Steve Russell; second by Lauren Facemire; adopted.
Lauren Facemire as Treasurer. Any questions or others interested in serving in this
capacity? None. Motion by Mark Ober; second by Donovan Brown; adopted.
Chairman Antonacci offers to fulfill the limited roles of the Secretary, as well.
Any other housekeeping? None.
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The Strike Force needs to schedule another meeting – perhaps in December, suggested by
Chairman Antonacci. Ms. Mayer will circulate to the Strike Force some meeting times in
December for consideration.
CFO suggests a fast track. Full effect of PIP law will go into effect in January 2013, and in the
interim the burden will be for DIF to provide relevant trends of changes in law.
Chairman Antonacci concluded the meeting saying he looks forward to this task and working
with everyone. Steve Russell made a motion to adjourn. Meeting adjourned.
Minutes recorded by Patty Cromartie, Office of Legislative Affairs, DFS.
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