Wednesday, October 28th, 2026 — A Florida construction company paid $10,500 for insurance policies that were never active, prompting an investigation that resulted in two arrests and multiple felony charges. The case involved fraudulent certificates of insurance (COIs) issued through a licensed insurance agency, according to the Florida Department of Financial Services (DFS).
The investigation began after the construction company submitted two certificates to a DFS compliance officer. A subsequent inquiry with the insurer established that neither policy had been active, despite the company's premium payment. Investigators traced the transaction to an individual who had been permanently barred from holding a Florida insurance agent license in 2002.
Despite that prohibition, the individual allegedly continued conducting insurance business within a licensed agency. DFS investigators determined that the agency's licensed agent-in-charge knew about the restriction and permitted the collection of premiums without securing legitimate coverage.
The individual accused of selling the nonexistent policies was arrested September 28, 2026, and faces charges including grand theft, organized scheme to defraud, insurance funds diversion, transacting insurance without a license, and conspiracy to commit racketeering. The agency's agent-in-charge was arrested October 20 on charges of grand theft, organized scheme to defraud, and conspiracy to commit racketeering. Both individuals are accused, not convicted, and the case falls under the jurisdiction of the Miami-Dade State Attorney's Office.
For insurance claims professionals, the incident raises concerns about the reliability of certificates of insurance used in construction contracting and vendor qualification. A certificate may document purported coverage without establishing that an underlying policy is active. Verifying coverage directly with the insurer and confirming an agent's licensing status can help identify discrepancies before a loss occurs.
Florida DFS maintains publicly accessible insurance licensing resources and encourages suspected insurance fraud to be reported through its hotline at 1-800-378-0445 or FraudFreeFlorida.com.
