Eight individuals suspected of operating an auto insurance fraud scheme in the Miami and Tampa areas were arrested this week, Florida’s Chief Financial Officer announced Tuesday. The accused parties include Alexander Cid, 47; Luis Rivero Dominguez, 35; Franklyn Chaviano, 38; Robert E Bayona, 55; Carlos Padron Fernandez, 38; Yosmel Ramos Peraza, 24; Andres Vega Fleites, 61; and Jorge Fernandez Rodriguez, 52. Each defendant faces federal charges in relation to the insurance fraud scheme, which lasted from May 2009 to May 2011. It is unclear whether any of the defendants has qualified for bail bond or retained a private criminal defense lawyer.
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Reports say that the defendants allegedly engaged in staged vehicular accidents, after which they would file insurance claims and receive fraudulent compensation, for about two years. Overall, the false claims allegedly helped the defendants receive an estimated $340,000, reports indicate. More details, such as the insurance companies and auto shops involved, have not yet been announced to the public.
The Florida Highway Patrol, along with the help of the state division, was able to track down and arrest eight individuals so far. It remains to be seen whether anyone else was potentially involved in the scheme. In a public release, a spokesperson from the investigation said, “I am proud of the fight we won this past legislative session to reform Florida’s personal injury protection system, but this does not mean we can rest. We must continue to remain diligent in our efforts to stop this type of fraud so that Florida drivers are protected.”
According to Florida officials, schemes like this are a large reason why no-fault auto insurance coverage has become so high. One official told the press that that the cost personal injury protection coverage has grown by nearly $1 billion over the last couple of years. Florida remains one of the fraud hubs of the United States.
In related news, several men were arrested out of Doral, Florida on Monday after they allegedly purchased gasoline with stolen credit cards at gas stations throughout South Florida, reports say. Investigators claim the men would then sell the fraudulently purchased gas on the black market for an easy profit. It is not clear whether any of the suspects, whose names have not been announced, has hired an attorney.
Police purportedly suspect that the defendants acquired stolen credit card information either by theft or by purchasing it on the black market. They were then able to produce counterfeit cards using a printer. The group allegedly used those counterfeit cards to purchase gas at various gas stations. “It’s a quick way to make money. It’s much easier then robbing someone,” a police detective explained.
According to investigators, the thieves owned a Chevy Avalanche that was fitted to hold and transport an excess of gasoline. “They equipped their cars with tanks that can hold up to 200 to 250 gallons. They’ll rig it so when they put the gas in the car it looks like it’s going into the tank, the gas tank of the car, but its actually going through a hose into the makeshift tank,” one investigator explained.
Police were able to track the gas thieves down to a Sam’s Club parking lot in Doral. It is unclear how many were arrested, as the identities have not been released yet. However, officers told press that more arrest might follow, as the investigation is ongoing.
