The Florida Department of Financial Services (DFS) has announced the arrest of two individuals accused of selling fraudulent insurance policies to a construction company, which paid $10,500 for a coverage that was never activated.
This alleged scam reportedly spanned over a period of four years, ultimately leaving the company without the mandatory workers' compensation insurance.
The suspects have been identified as 52-year-old Yaudat Antonio Ohan from Hialeah, and Alberto Villaruel, a licensed insurance agent operating out of Hialeah Discount Insurance.
Uncovering the Insurance Scam
The DFS investigation kicked off after a flooring installation business submitted two insurance certificates to a state compliance official. Upon verifying the documents, investigators found that the insurer listed on the certificates had never issued the corresponding policies.
Authorities claim that Ohan accepted the $10,500 in premiums directly without providing valid coverage to the company.
Impact on the Construction Company
The investigation also had repercussions for the construction company involved. As reported by Insurance Journal, the company was issued a stop-work order for lacking the required workers' compensation insurance for its employees.
Background and Charges Against Ohan and Villaruel
Ohan was apprehended on September 28 and is facing multiple charges, including conspiracy to engage in racketeering activities, organized fraud, grand theft, falsification of documents, illegal use of telecoms devices, unlicensed insurance operations, and misappropriation of funds.
According to Insurance Business, Ohan had been permanently barred from acting as an insurance agent in Florida since 2002 following a conviction for racketeering activities. Despite this ban, investigators allege that he continued to conduct insurance operations from Hialeah Discount Insurance, where he worked alongside Villaruel.
Villaruel was arrested on October 20 and is charged with grand theft, organized fraud, and conspiracy to commit racketeering activities. The DFS investigation suggests that Villaruel was aware of Ohan's lack of a license and allegedly permitted him to conduct insurance business from the agency.
Reports indicate that Ohan held supervisory roles within the establishment, despite his unauthorized status. Villaruel reportedly sold the agency shortly after being interviewed by investigators, a move perceived as an attempt to obscure the alleged illegal activities.
Warnings and Preventive Measures
Florida's Chief Financial Officer, Blaise Ingoglia, emphasized in an official statement on October 27 that insurance policies should safeguard citizens rather than enrich those operating illegally in the sector. He assured that the authorities would take action against those selling unlicensed insurance and those enabling such operations.
Businesses purchasing insurance without verifying its authenticity risk losing their payments and may find themselves uninsured when needing to prove legal compliance.
In Florida, business owners can verify an agent's authorization through the DFS's official licensing portal. Authorities also advise confirming directly with the insurer that a policy exists and is active, rather than solely relying on the intermediary's certificate.
Suspected fraud can be reported to the DFS via phone at 1-800-378-0445 or through FraudFreeFlorida.com.
Understanding Insurance Fraud in Florida
What charges are Ohan and Villaruel facing?
Ohan faces charges including conspiracy to commit racketeering, organized fraud, grand theft, falsification of documents, illegal use of telecoms devices, unlicensed insurance operations, and misappropriation of funds. Villaruel is charged with grand theft, organized fraud, and conspiracy to commit racketeering.
How can Florida businesses verify an insurance agent's license?
Businesses in Florida can verify an insurance agent's license through the Department of Financial Services' official licensing portal.
What should companies do to ensure their insurance coverage is legitimate?
Companies should confirm directly with the insurance provider that their policy is valid and active, rather than relying solely on certificates provided by intermediaries.
Where can suspected insurance fraud be reported in Florida?
Suspected insurance fraud can be reported to the Florida Department of Financial Services via the hotline at 1-800-378-0445 or through the website FraudFreeFlorida.com.