Public Adjusters Arrested in Broken Tile Insurance Fraud Scheme
Several public adjusters with Global Adjusters were arrested in a broken tile fraud claim scheme. Wrong is wrong. Everybody is entitled to a presumption of innocence. Yet, the statement in the arrest warrant alleges what so many others have been complaining privately to me, and then publicly in the past legislative session---there are far too many broken tile claims occurring with the same public adjusters in South Florida for all to be legitimate.
Truth is stranger than fiction. I will keep this post short so you can read this bizarre story. I have never heard of a house being wired by a CIA agent spouse in a divorce. The attempts to destroy this evidence are amusing. I am not certain what my attorney friend, Ken Duboff's relationship with Global Adjusters is, so that he was quickly on the scene. However, his instructions not to tamper with the criminal and civil evidence were proper, although allegedly not followed.
As I write this, I am thinking about the dozens of very honorable and ethical public adjusters across the country that will call, write and speak to me about this. They have done so in the past. Since many look to me for information, and sometimes leadership, about what happens in Florida insurance adjusting, I am aghast and saddened by these acts. In A Few Bad Apples, I noted:
The insurance industry claims billions of dollars are lost as a result of insurance fraud. They insinuate that their otherwise honest customers become crooks at the time a loss occurs. If that were true, insurance would be the most socially defective product ever imagined and marketed.
It has been our experience that insurance fraud by customers occurs, but in a very limited instances. Yet, when it does, the insurance companies, police, and departments of insurance act in concert with publicists to show they are doing their anti-fraud jobs and make an impression on the public that some are engaged in wrongful behavior.
When a public adjuster is involved, it reinforces the perception by those acting on behalf of the insurance industry that 'public adjusters just cannot be trusted.' The old adage, "a few bad apples can destroy an entire basket," comes to mind when I hear or read stories like the one cited above. Public adjusters must beware that if this perception persists, they could be in danger of having licensing statutes disappear or severely limited in the states that allow public adjusting.
I am giving a speech about professionalism and ethics at the National Association of Public Insurance Adjuster's Annual Convention next month. The title, “Fantastic Adjustment Results through Professionalism and Ethical Conduct: Tips from the Masters and Lessons from the School of Hard Knocks,” will certainly be timely given this situation. The problem is that the people who need these lessons the most will not even be in the audience.
"The problem is that the people who need these lessons the most will not even be in the audience."
WOW! There could not be a more fitting statement at the end of this post. It's so very true.
Thanks for posting this blog. I too had heard this was rampant. I bet ITEL who insurers use to match tile can really shed some light on how bad this was as I heard many carriers were using them trying to match the tile which insurers were told could not be matched on these losses.
This reminds me of years ago where a PA in the FL panhandle was using the same rental house at the same price for different insureds even during the same time period as an ALE temporary location at an exhorbant price post hurricane landfall. They knew that insurers did not track that information at the time and I'm sure many insurers were dupped on this. We caught it at a claim management level as the adjusters didn't know since 3 different adjusters had handled these losses.
You are right about a few bad apples making them all look bad... It will be interesting to find out if more come to light.
Chip; Just to set the record straight you may want to post this on your blog. The facts are as follows: On April 7, 2010, I received a telephone call and spoke with a public adjuster's client who advised me that she had sustained a fire loss two months prior on 2/23/2010, and I was asked to meet with her at her house to discuss retaining me. I said yes, and went to her home. I do not think you had those facts when you said that I was "quickly on the scene." By the way, for those public adjusters out there that from time to time recommend my services, they know very well that I have no problem personally meeting with prospective clients at their residences to discuss my fees and services.
Ken Duboff
Ken,
Thanks for the comment.
I commend you on keeping everybody straight on the evidence. Great job. Some think that attorneys help hide evidence when the opposite is what generally goes on--unless you represent insurance companies. Those insurance attorneys do not normally "hide" or "destroy" evidence. They just object to turning it over.
Going to the loss site is the best practice. And you meeting your potential client at the home is perfect practice. I encourage it. I am often on the roof of a building going over the damage before getting retained. In the Port of New Orleans, I spent two days going over their property and meeting with employees before deciding to represent them.
The "quickly on the scene" was referencing how quickly you got out there the same day. As you indicate in your comment, you got a call and as indicated in the arrest statement, you were out there the same day--which is "quickly on the scene" in my book. I wish other attorneys working in my firm could follow up that fast because that is the best practice.
bad apples.
If there are any bad apples out there reading this - you will get caught - and when you do, you will put another black eye on the consumer advocates who are doing the right thing out there with their public adjuster's licenses.
I encourage the proper authorities to weed them out and leave the good guys to do the important work of helping insured Floridians receive fair and just compensation.
From a licensed South Florida PA - 10 years a/k/a/ "one of the good guys".
I can't say any of this surprises me. When homeowners are routinely making claims...for a single chip in a ceramic floor tile, the financial incentive for bad actors will be there. This is particularly true when this kind of "damage" is so easily fabricated and difficult to prove as fraudulent.
I'm not saying every one of the...chipped tile claims I have defended have been bogus, but before three or four years ago, I had never heard of such a claim being made before. Perhaps in the past they were handled without much disagreement or litigation, so that as a lawyer I did not become aware of them; but the dollar amounts being claimed nowadays have become unhinged from reality. At least that's one defense lawyer's opinion.
As for Ken Duboff, I know he's one of the good guys. Ken, you get off your duff and take a look at the evidence. The fact a lawyer does his job by getting out of the air conditioned office once in a while should not give rise to an inference of wrongdoing. You and I have been on more than a few site visits together (though always in opposition) and it's been my professional pleasure to work with you.
Brian Hunter
Brian,
Thanks for sharing your opinion.
Ken is one of the "good guys." And again, his request to not tamper wih the evidence was exactly right. No attorney likes to get in the middle of that and he did the right thing by warning others not to break the law.
i agree with Nancy Dminguez.
It is a shame that such people can ruin the reputation of honest and ethical adjusters. Maybe one day they will wake up and stop being greedy and do things ethical for a change.
It will all come back to haunt them, although they might walk away with some extra cash in the short term. But, bad beavior will all come up in the wash over time.
Just from a legal stand point, I wonder what the defendants defense will be in this case. It seems there is plenty of direct evidence that will lend credence to the Prosecutor's case. Eye witness testimony, audio visual recording.
They will seize all his files for their investigation, seek discovery of anything else, start knocking on previous clients' doors. The elements of fraud are met, at least to defraud for money. So what can he really do? Start the domino effect? How can he mitigate his intentional actions made with knowledge of falsity to defraud an insurer?
I just hope this does not sit on the calendar for 9 years of motions and continuances.