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Rates were too good to be true

An insurance agent's clients had zero or inadequate coverage, detectives say.

By EILEEN SCHULTE, Times Staff Writer
Published November 10, 2007

At least 22 clients of a Safety Harbor insurance company got unbelievably low rates for their house and car policies in 2006 and 2007.

"They were thrilled to death," said Pinellas County sheriff's Detective Steve Bingham.

The trouble was the rates didn't really exist, he said.

Investigators said the clients' insurance agent, Robert S. Garcia Jr., 36, a licensed underwriter for a State Farm Insurance office at 2454 N McMullen-Booth Road, sold policies to homeowners, mortgage companies and drivers that were deliberately priced lower than or equal to competitors' rates in order to stir up business.

Authorities said Garcia would use State Farm Insurance certificates to mislead his clients into believing they had various forms of coverage which they did not.

On Friday, Garcia of Dundee was arrested and charged with one count of felony scheme to defraud and one count of forgery.

He was booked into the Pinellas County Jail and was being held in lieu of $60,000 bail.

Customers allegedly had no idea they had zero or inadequate coverage. In at least one case, a victim drove without insurance even though he had paid for the policy, officials said.

The scam began on Jan. 1, 2006, and continued through March 2, 2007, authorities said.

Garcia is accused of manipulating the internal State Farm system to make the insurance appear legitimate when clients got suspicious and started asking questions.

Twice, police said, Garcia forged Diana Devito's signature. Devito is the owner of the office.

The scheme netted Garcia more than $14,000 in bonuses and commission fees, according to the Sheriff's Office.

Bingham said Garcia transferred to a Lakeland State Farm office in March, but he no longer works there.

Eventually, he lost his license, Bingham said.

The Sheriff's Office launched an investigation in April after Devito filed a report.

In a statement Friday, Devito called the situation regrettable but said her office took quick action to ensure that those affected were notified quickly.

"Due to the nature of the crimes," Devito wrote, "prosecution was necessary to ensure that Mr. Garcia does not have the opportunity to further violate consumer trust."

[Last modified November 10, 2007, 00:35:20]