December 2011
Volume 2 - Issue 6
“CFO Atwater believes
that Florida’s auto
insurance system has
been over taken by a
circling pool of piranha
- fraud clinics, lawyer
referral services and
organized crime...”
HEADER HERE
CFO Atwater Calls
on Legislature for
Major PIP Reform
CFO Jeff Atwater, standing alongside Governor Rick Scott in a press conference
held on November 15 in the State Capitol, called on lawmakers to fix Florida’s
auto insurance system. Following a series of meetings held with insurance
consumers across the state, Atwater returned to Tallahassee with one
conclusion - the cost of auto insurance has skyrocketed and Floridians can’t take
it much longer.
CFO Atwater and Gov. Scott have called on the Legislature with the support of
Senators Joe Negron and Garrett Richter, and Representatives Jim Boyd,
Dorothy Hukill and Bryan Nelson to address four key areas that will go a long
way in driving down rates for Florida’s consumers.
 Fraud Prevention: Florida leads the nation in fake accidents. Organized
fraud rings and criminal enterprises are gaming the system and we all pay.
 Litigation Reform: From 2006 to 2010, PIP-related lawsuits pending at
year-end increased by 387 percent. Attorney fees often far exceed the value of
the $10,000 coverage and the damage amounts in dispute.
 Utilization and Provider Reform: Honest consumers are footing the bill for
INSIDE THIS ISSUE
1
CFO Calls for PIP
Reform
2
Lawyer Referral
Services
3
PIP Fraud in the News
4
Statewide Arrests
6
Statewide Contacts
fake procedures at fake clinics, and we can’t throw these fraudsters in jail fast
enough! Insurance should cover medical treatment for real injury; our current
system is covering multiple treatments for individuals who were never injured.
 Accountability: Every insurance company in this state will either reduce
rates or have to answer to explain to their customers why they have failed them.
CFO Atwater believes that Florida’s auto insurance system has been overtaken
by a circling pool of piranha - fraud clinics, lawyer referral services and
organized crime - that have been making their millions on the backs of every
Floridian with a car on the road.
These reforms have one simple goal - to reduce the cost of auto insurance for
Florida’s consumers - on behalf of the consumers of this state who have been
burdened by an auto insurance system with seemingly ever-rising rates.
If you agree that changes are needed in Florida’s PIP laws, contact your
legislator and let your voice be heard.
December 2011
Page 2
CFO Atwater calls on Florida Bar
to Ban Lawyer Referral Services
Florida Chief Financial Officer Jeff Atwater has
called on the Florida Bar to ban lawyer referral
services.
The CFO’s request came just days after the Bar’s
Special Committee on Lawyer Referral Services which has been studying the issue since March began formulating its recommendations to deal
with concerns involving referral services.
In a November 15 letter to Bar President Scott
Hawkins, Atwater said individuals “disguised as
legitimate referral services have been able to
prey on society for so long” and perpetuate fraud,
particularly related to medical and legal claims
stemming from auto accidents.
“This must stop, and I believe the Bar is in the
best position to expeditiously institute a
permanent ban against lawyer referral services,”
Atwater wrote.
While not naming any particular referral service,
Atwater urged the Florida Bar to ban all of them.
While the Bar has no regulatory authority over
clinics or the actual referral service, it could
prohibit lawyers from dealing with them.
Florida has more than 70 accident referral
services registered with the Bar.
Recommendations by the Special Committee on
Lawyer Referral Services are expected in early
2012.
If the Bar does not ban lawyer referral services,
Atwater said the Legislature should act.
A copy of Atwater’s letter can be seen at right.
RELATED ARTICLES ON LAWYER REFERRAL SERVICES
1 - See article on Atwater letter by Gary Blankenship in the Florida Bar News https://www.floridabar.org/__85256AA9005B9F25.nsf/0/BE58547B071B66818525794B00476E64?OpenDocument.
2 - See related article by Stephen Nohlgren in the St Petersburg Times http://www.tampabay.com/news/politics/legislature/florida-cfo-jeff-atwater-calls-for-ban-on-referral-services-like/1201821
3 - Florida Bar President Scott Hawkins responds to Atwater letter; Bar will work with law enforcement to stem abuses http://www.floridabar.org/DIVCOM/JN/jnnews01.nsf/8c9f13012b96736985256aa900624829/aa74aa8c46a361928525795d004984f3!OpenDocument
4 - Another article by Gary Blankenship on the LRS Committee working on recommendations https://www.floridabar.org/__85256AA9005B9F25.nsf/0/39A1525C172D92A98525794F004A9DF9?OpenDocument
5 - Florida Bar’s Standing Committee on Advertising rejects the use of an actor portraying a judge in ads by attorneys,
because the actor judge was doing something a real judge could not do: endorse a law firm http://www.floridabar.org/DIVCOM/JN/jnnews01.nsf/8c9f13012b96736985256aa900624829/0c10e8d73663f8628525795d004af709!OpenDocument
6 - Article on lawyer referral services and pip fraud in general written by David Armstrong of Bloomberg News at http://www.bloomberg.com/news/2011-11-10/insurance-fraud-probed-with-romney-s-fundraiser-cited-by-victims.html.
The PIP Source
Page 3
PIP FRAUD – In The News
CFO Atwater Appoints New DIF Director
Chief Financial Officer Jeff Atwater today announced the appointment of law enforcement veteran and crime fighter
Daniel S. Anderson as the new Director of the Division of Insurance Fraud (DIF). Anderson, a 25-year veteran of the
Drug Enforcement Administration with extensive experience in global criminal investigations and law enforcement
coalition building, will be on the job next month.
“We are pleased to have a professional of Dan’s caliber join our team, and I know he will be a tremendous asset in our
continuing fight to crackdown on fraudsters in Florida,” said CFO Atwater. “With auto insurance and workers’
compensation fraud schemes increasing the cost of living for our fellow Floridians, there is no more capable person to
confront these challenges head-on, dismantle these schemes and put the criminals behind bars.”
Anderson began his law enforcement career in 1982 as a police officer in Broward County. He joined the Drug
Enforcement Administration in 1986 as a Special Agent, where he served until his appointment as Director of DIF.
During Anderson’s 25 years with the DEA, he has served in many high-level positions, including Instructor at the DEA
Academy educating thousands of law enforcement personnel; Group Supervisor at DEA’s Norfolk, Va., Office; Unit
Chief of Operations Management at DEA Headquarters; and, most recently, as the Associate Special Agent in Charge of
the DEA’s New York Field Division overseeing more than 800 employees.
Anderson will lead the Division of Insurance Fraud, which made nearly 1,000 insurance fraud-related arrests last fiscal
year. He will be responsible for supervising 155 sworn law enforcement officers, managers and administrators, and 48
non-sworn civilian support staff members. Anderson will officially start with the Division in February 2012.
Florida Looks to Tampa as Leader in Fight Against PIP Fraud
The move by one Florida county to crack down on auto insurance fraud by targeting staged accidents and regulating
clinics is being seen as a roadmap for state officials looking to reform the state’s no-fault auto insurance law.
Gov. Rick Scott and Chief Financial Officer Jeff Atwater, along with other state officials, held a public meeting with local
Tampa officials and citizens to discuss the state’s growing personal injury protection (PIP) insurance fraud problem,
which officials say is driving up premiums for state drivers by hundreds of dollars.
The Hillsborough Sheriff’s Department has targeted staged accidents by stepping up patrols and surveillance, while
actively asking local drivers to report suspicious accidents. In the last 15 months, the department reported 123 arrests
that have resulted in 150 criminal charges due to staged accidents.
Atwater praised local officials for targeting the clinics and said it should serve as a model for state lawmakers who are
expected to tackle PIP reform when the legislature convenes next January.
The Hillsborough County Commission recently enacted a local ordinance targeting the business practices of the clinics,
the first of its kind in the state.
“Regrettably, you had to go first,” he said. “Let us export the good work of Tampa Bay and get this burden off the back of
all Floridians.”
Read the entire article by Michael Adams of the Insurance Journal at http://www.insurancejournal.com/news/
southeast/2011/11/10/223706.htm
Allstate Donates Equipment and Vehicle to Hialeah Police Department
Allstate Insurance has donated a Parabolic-Microphone to the
Hialeah Police Department Organized Fraud and Auto Theft
Unit. Allstate also renewed its Vehicle Donation Agreement with
the department and provided a Ford Edge to be used as a
surveillance vehicle.
Left to right are Sgt. Ronny Duke, Hialeah Auto Theft, Allstate
SIU Supervisor South Florida Angel Torres, NICB SSA Tony
Fernandez, Allstate Southern US SIU Manager Betty Moore,
Allstate SIU Investigator Dallas Taylor, Allstate Manager Dana
Banta, and Hialeah Detective Bureau Commander James
Somohano.
December 2011
Page 4
Statewide PIP Arrests – November 2011
Each issue will provide a list of PIP arrests made by the offices throughout the State. Along with each defendant’s name
and age, we will include: the type of scheme involved; the fraud dollar amount; clinic name(s); victim insurance company
name(s); and the arresting office. If you need additional details on any of these arrests, please contact Captain Smith.
Sari Rivas, 24 – jump-in - $0 (Geico) B
Teresita Rodriguez Bande, 43 – clinic employee - $209,656 – Better Life Medical Center (State Farm) M
Ahwhon Mileek McCants, 23 - staged acct 12/14/10 (recruiter) $30,000 – Palm Beach Chiropractic Clinic (Republic Western) W
Darrell Tyson, 36 – fake ins card (Ocean Harbor) W
Pierre Antoine Joseph, 41 – staged acct 07/10/10 (passenger) $5,506 - Injury Care / Pine Hills Family Chiropractic /
Silver Hills Health & Rehab (Allstate / Geico / Progressive / State Farm) O
Madeline Emile, 28 - staged acct 07/10/10 (driver) $5,506 - Injury Care / Pine Hills Family Chiropractic / Silver Hills
Health & Rehab (Allstate / Geico / Progressive / State Farm) O
Yolanda Denise Roberts, 39 - staged acct 07/10/10 ()$5,506 - Injury Care / Pine Hills Family Chiropractic / Silver Hills
Health & Rehab (Allstate / Geico / Progressive / State Farm) O
Lufaite Olizia, 40 - staged acct 07/10/10 (recruiter) $5,506 - Injury Care / Pine Hills Family Chiropractic / Silver Hills
Health & Rehab (Allstate / Geico / Progressive / State Farm) O
Tracey McFarlane, 40 - staged acct 07/10/10 (recruiter) $5,506 - Injury Care / Pine Hills Family Chiropractic / Silver Hills
Health & Rehab (Allstate / Geico / Progressive / State Farm) O
Edersy Suarez, 38 – intellectual property (Kingsway Amigo) M
Marialejandra Beltran, 24 – intellectual property (Kingsway Amigo) M
Aureliano Diaz, 54 – clinic employee - $28,256 - New York Medical & Rehab Center / Karow Chiropractic Center, PA /
Chiropractic Office of South FL, LLC / J & L Transportation () W
Octavius Travado Simpson, 29 – fake ins card (Geico) W
Lotant Eustache, 60 - jump-in 10/01/10 - $8,731 - St Anne Medical Center (State Farm) W
Pierre Paul Augustin, 68 – jump-in 10/01/10 - $15,835 - St Anne Medical Center (Progressive) W
Jean Courtous Loseille, 72 – false statement in support of jump-in - $24,566 - St Anne Medical Center (Progressive /
State Farm) W
Johnnie Edward Johnson, 30 – staged acct 03/04/10 (driver) $3,395 – Health Care Pain Solutions (First Acceptance) T
Frederick Newton, 22 – fake ins card (Ocean Harbor) W
Oscar Chavarria Sanchez, 29 – staged acct 09/17/10 (passenger) $2,486 - A-1 Medical Center (Kingsway Amigo) T
Jesenia Torres, 32 – staged acct 09/17/10 (passenger) $6,519 - Alpha Medical Center (Geico) T
Luis Armando Corrales, 45 – staged acct 03/20/09 (driver) $ - Better Life Medical Center (Affirmative / RAC / State
Farm / US Security) M
Ramon Clemente, 37 – staged acct 07/01/09 (recruiter) $93,303 – Omega Medical Center Corp / World of Rehabilitation Therapy (Geico / State Farm) M
George Torres, 26 – staged acct 09/17/10 (driver) $6,271 - Alpha Medical Center (Geico) T
Ruben Telisme, 28 – fake ins card (Direct General) W
Kayla Pena, 20 – staged acct 08/01/10 (driver) $45,400 – St Jude Rehab (Geico / State Farm) M
Office Code –B (Broward) F (Ft Myers) J (Jacksonville) M (Miami) O (Orlando) TL (Tallahassee) T (Tampa/St Pete) W (West Palm Beach)
The PIP Source
Page 5
Statewide PIP Arrests – November 2011
Each issue will provide a list of PIP arrests made by the offices throughout the State. Along with each defendant’s name
and age, we will include: the type of scheme involved; the fraud dollar amount; clinic name(s); victim insurance company
name(s); and the arresting office. If you need additional details on any of these arrests, please contact Captain Smith.
Edward Ray Brewster, 34 – clinic employee - $6,310 – Florida Rehabilitation Practice (Bristol West) T
Martha Maria Rodriguez, 42 - clinic employee - $6,310 – Florida Rehabilitation Practice (Bristol West) T
Mario D Ramon, 50 – clinic employee - $3,333 - Chiropractic & Therapy Services (Allstate) W
Alberto Garcia Borrego, 40 – insurance fraud / patient brokering – $6,310 - Florida Rehabilitation Practice (Bristol West) T
Malik Farrakan Easley, 20 – staged acct 08/01/10 (passenger) $29,065 – St Jude Rehab (Geico / State Farm) M
Alexander Cid, 46 – staged acct 09/16/09 (recruiter) $150,123 – Fl Wellness & Rehab Center / Miami Neurology & Rehab Specialist (Old Republic / Progressive / Republic West / State Farm) M
Beatriz Gomez, 25 – clinic employee - $100,000 - Underwood Health Care Clinic (Direct /Progressive / State Farm) T
Ibrahim Cueto Bernardo, 53 – clinic owner - $100,000 - Underwood Health Care Clinic (Direct / Progressive / State Farm) T
Osmany Ruiz Lopez, 36 – clinic owner - $100,000 - Underwood Health Care Clinic (Direct / Progressive / State Farm) T
Anthony E Fedd, 56 – pip patient - $6,000 - McGowan Spinal Rehabilitation (Direct General) J
Office Code –B (Broward) F (Ft Myers) J (Jacksonville) M (Miami) O (Orlando) TL (Tallahassee) T (Tampa/St Pete) W (West Palm Beach)
The Division of Insurance Fraud Would Like To Wish
All Of Our Readers A Happy Holiday Season!
How You Can Help Fight Insurance Fraud in Florida
This year, the Florida Legislature created a fund to which anyone can contribute to the fight against insurance fraud by
making a donation, gift or grant to the Insurance Regulatory Trust Fund. The proceeds will be used by the Division of
Insurance Fraud to hire additional dedicated prosecutors, insurance fraud detectives, and fund anti-fraud programs
around the state. This is an exciting program that we believe will have a substantial impact on insurance fraud in Florida.
Payments should be made payable to: The Department of Financial Services
The mailing address is:
Department of Financial Services
Revenue Processing Section
P.O. Box 6100
Tallahassee FL, 32314-6100
The donor should include correspondence with the check indicating this is a grant or donation for the Division of
Insurance Fraud. The letter should include his / her intent that the grant or donation be deposited to the Insurance
Regulatory Trust Fund and used for anti-fraud efforts. Also include a statement that if the donation is to be used for any
other purpose, the funding should be withdrawn.
If you have any questions, you can contact us at the PIP Source and we will get an answer. Thank you for your help.
Join the Fight. Be a part of the Solution. Make a Difference.
December 2011
Page 6
Statewide PIP Contacts
PANHANDLE REGION
Counties: Bay, Calhoun, Escambia, Franklin, Gadsden, Gulf,
Holmes, Jackson, Jefferson, Lafayette, Leon, Liberty,
Madison, Okaloosa, Santa Rosa, Taylor, Wakulla, Walton,
Washington
Pensacola Field Office - 850.453.7802
Captain Buddy HAND
Lt. Joseph HOLOKAN
NORTH REGION
Counties: Alachua, Baker, Bradford, Citrus, Clay, Columbia,
Dixie, Duval, Flagler, Gilchrist, Hamilton, Levy, Marion,
Nassau, Putnam, St. Johns, Sumter, Suwannee, Union
Jacksonville Field Office - 904.798.5802
Captain Brian McCOY
Lt. Kevin JONES
WEST CENTRAL REGION
Counties: Charlotte, Collier, DeSoto, Glades, Hardee, Hendry,
Hernando, Highlands, Hillsborough, Lee, Manatee, Pasco,
Pinellas, Polk, Sarasota
Tampa Field Office - 813.972.8602
Captain Michael BYRNE
Lt. Carlos ROSARIO
Lt. Darrell WILSON
Fort Myers Field Office - 239.278.7527
Lt. Mark FRITZ
Copy goes her.
Editor’s
Corner
As we get ever closer to the 2012 Legislative
Session, CFO Atwater is pushing hard for major
PIP reform in Florida.
In our cover story, we
outline the four key areas of reform.
On page 2, CFO Atwater has called on the Florida
Bar to ban lawyer referral services.
We provide the first news on the next DIF Director,
Daniel Anderson, who will start in 2012.
We wish each and every one of you a happy
holiday season. Stay safe, and enjoy the time with
your family and friends.
EAST CENTRAL REGION
Counties: Brevard, Indian River, Lake, Martin, Okeechobee,
Orange, Osceola, Palm Beach, Seminole, St. Lucie, Volusia
West Palm Beach Field Office - 561.837.5601
Major Simon BLANK
Captain Glen HUGHES
Lt. Evangelina BROOKS
Orlando Field Office - 407.835.4402
Lt. Jewel CAMERON
SOUTH REGION
Counties: Broward, Dade, Monroe
Miami Field Office - 305.536.0302
Captain Steven SMITH
Lt. Violeta SERRANO
Lt. John DYGON
Lt. Stanley JEAN-FELIX
Plantation Field Office - 954.321.2902
Lt. Bill LEE
South Florida Major Medical Fraud Task Force
Supervisory Special Agent Fred Burkhardt 954.329.7427
Central Florida Major Medical Fraud Task Force
Supervisory Special Agent Dennis Russo 863.967.6904