Following separate sting operations, state investigators have made their first two arrests in a continuing search for unlicensed insurance adjusters who are soliciting Hurricane Charley victims.
Richard Viera, 36, of Fort Myers was arrested Thursday afternoon on one count of operating without being licensed as a public adjuster. Wayne R. McConnell, 45, of Cherry Hill, N.J., was arrested Friday on the same charge.
Both face up to five years in prison, a $5,000 fine and restitution if convicted of the third-degree felony.
"It is unfortunate, but disasters bring out the best and the worst in people," said Florida Chief Financial Officer Tom Gallagher, who oversees insurance regulation. "Storm victims must be sure that they are dealing with a legitimate adjuster and verify that by calling the department's storm helpline."
Public adjusters are typically hired by policyholders when they are in disagreement with their insurance company or think they are being treated unfairly.
As of last week, there were about 400 public adjusters licensed in Florida and 300 applicants, many of whom sought licensing soon after Charley struck Aug. 13. "We could end up with 700 on the streets before this is done," said Nina Banister, a spokeswoman in Gallagher's office.
According to investigators, Viera was soliciting business in the Punta Gorda area for Public Insurance Adjusters, a Florida corporation with an address in Miami. Pedro Herea, a representative for the company, said he has documents showing Public Insurance Adjusters is bonded to do business in Florida, but he will look into the question of whether an additional license is necessary.
The investigation began after homeowners in the Iona Gardens area of Sanibel Island reported they had received promotional fliers from Viera offering to help them file insurance claims.
Investigators learned that Viera had entered Sanibel Island daily since Monday and they set up a sting on the island. Viera allegedly told them he had negotiated other contracts in the area.
Banister said the state is still going through Viera's records, but it appears as many as a half-dozen hurricane victims had signed contracts with him. She did not know whether Viera had received money up front from any homeowners, which also could be a violation of state law.
McConnell, like Viera, was operating around Punta Gorda, soliciting business for Young Adjustment Co. of Blue Bell, Pa. A company representative could not be reached.
Gallagher issued an emergency rule last week giving owners of damaged property 14 days to back out of any contract with a public adjuster. He also capped public adjuster fees at 10 percent of any claim payment and ordered that the adjusters cannot require an up-front payment.
Between agents with the Bureau of Agent and Agency Investigations and the Division of Insurance Fraud, Gallagher's department has about 50 employees in hurricane-ravaged areas on the lookout for fraud.
Any policyholder who has a question about an insurance adjuster can contact state regulators by calling 1-800-227-8676.
