Florida Nabs Phony Auto Claims Perpetrators

Two former police officers and 19 others were charged for their roles in bilking ten insurance companies out of an estimated $3 million through phony car-wreck claims, according to Florida Treasurer and Insurance Commissioner Bill Nelson.

Besides the two cops, many of the defendants worked as insurance adjusters or agents. Central to the scheme was a Dade County repair shop, Miami Auto Body Works, which is owned by a man described by investigators as a ringleader.

State insurance investigators said there were four ringleaders in all, who they said directed others in submitting multiple insurance claims on previously damaged vehicles. For instance, one adjuster used his 1996 Toyota Corolla in at least six different claims. Each claim was for damage from an accident in Broward County in February 1996.

Suspects were being arrested at their homes or jobs. The ringleaders—an adjuster, the body shop owner, an ex-police officer and an insurance agent—were charged in warrants with racketeering.

"Today we're shutting down a criminal enterprise that ripped off insurance companies," Nelson said. "In the end, Florida consumers would have been stuck with the tab in the form of higher premiums. We need to have zero tolerance for insurance fraud."

The two former police officers were identified by investigators as Jorge Diaz Jr. and Peter Falcon. Diaz has been terminated from his job as a police officer with the Sweetwater Police Department in connection with a false report of an accident involving his police cruiser. Falcon, a former part-time officer for the El Portal Police Department, on two occasions allegedly wrote false traffic accident reports used by ring members.

Working on a tip from Allstate Insurance Co., the state began operation "Merry-Go-Round" in January 1997. The case was investigated jointly by the Florida Department of Insurance, Division of Insurance Fraud, and the Dade County State Attorney's Office.

Those identified by investigators as ringleaders:

• Juan Carlos Diaz, 36, 15947 S.W. 147th Avenue, Miami; independent adjuster
• Daniel Masso, 27, 11720 S.W. 97th Street, Miami; owner of Miami Auto Body
• Peter Falcon, 32, 5161 Collins Avenue, Miami Beach; former El Portal police officer
• Maria Acuna, 35, 14250 S.W. 37th Street, Miami; insurance agent.

Also charged in the case:

• Ihosvanny Alvarez, 29, 640 N.E. 1st Place, Hialeah; mechanic
• Rafael Masso, 23, 3630 N.W. 14th Terrace, Miami; mechanic
• Jorge Diaz, Sr., 57, 30320 S.W. 155th Avenue, Miami; independent adjuster
• Jorge Diaz, Jr., 28, 14541 S.W. 293rd Terrace, Miami; former Sweetwater police officer
• Rodolfo De La Torre, 66, 1475 W. 46th Street, Apt. #229, Hialeah; security guard
• Scott Woodard, 31, 10142 S.W. 223rd Terrace, Miami; Allstate adjuster
• Abraham Reyes, 30, 9431 S.W. 25th Street, Miami; former Liberty Mutual adjuster
• Juan Vazquez, 38, 14400 S.W. 153rd Terrace, Miami; former Progressive adjuster
• Ulysses Vazquez, 33, 14081 S.W. 8th Terrace, Miami; insurance agent
• Carlos Segrado, 27, 630 S.W. 71st Court, Miami; insurance agent
• Jose Romero, 31, 17970 S.W. 136th Avenue, Miami; insurance clerk
• Miguel Gutierrez, 35, 15271 S.W. 177th Terrace, Miami; tire mechanic
• Pedro Andreu, 33, 14250 S.W. 37th Street, Miami; insurance adjuster
• Orlando Leon, 34, 11400 S.W. 108th Court, Miami; former Allstate adjuster
• Ramon Montesdeoca, 41, 9310 S.W. 62nd Street, Miami; window blind installer
• Pedro Perez, 39, 3183 West 78th Street, Hialeah; truck driver
• Thomas Chabot, 42, 239 Hermitage Hill W., Valrico; former Fireman's Fund adjuster.