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Insurance claims adjuster sentenced to prison time
He worked as a claims adjuster for Allstate between 2015 and 2019
Insurance claims adjuster sentenced to prison time
Insurance News
By Jonalyn Cueto

Oct 23, 2023

A Raleigh man has been sentenced to more than one year of prison time after pleading guilty to accusations of wire fraud and money laundering. Apart from prison time, Massey was also ordered to complete three years of supervised release and to pay over $860,000 in restitution.

According to federal prosecutors, Paul Richard Massey, 51 years of age and a resident of Shady Spring, admitted to issuing fraudulent payments as an insurance claims adjuster and using the money to fund a powersports business he owns.

Fraudulent transactions and activities admitted
Massey worked as a claims adjuster for Allstate Insurance Company between 2015 and June 2019, and during his employment was routinely assigned claim files to investigate when Allstate customers filed claims under their insurance policies.

Allstate had provided Massey with the authority to investigate assigned claims as well as determine coverage and work with insured customers and other stakeholders to resolve the disputed claims. Among other things he was entrusted was issuing settlement check payments to policyholders and businesses.

The federal prosecutors said Massey admitted to authorizing and issuing a check on Dec. 26, 2018 amounting to more than $15,000 on behalf of Allstate to a business called American Mitigation Services LLC, also known as AMS Cleaning. The check issued for AMS Cleaning was allegedly for work performed and thus deposited into AMS Cleaning’s bank account. Massey admitted it was fraudulent as AMC Cleaning completed no work to justify the payment.

Massey also admitted that he had a business relationship with AMS Cleaning and was an authorized signer on the business’ bank account.

Among the things Massey admitted was authorizing and issuing 68 fraudulent claim payment checks on behalf of Allstate amounting up to over $850,000 to AMS Cleaning between January 2018 and June 2019, federal prosecutors said.

Massey had attempted to cover the fraudulent nature of some of the checks by creating fraudulent receipts and documents. He also used the fraudulent claims payments deposited in AMS Cleaning’s bank account to fund Massey Powersports LLC, which he owned and operated.

The investigations revealed Massey routinely wrote checks from AMS Cleaning’s bank account to fund Massey Powersports, including payments for employees and purchasing inventory as well as paying for recurring bills.

Massey also admitted that in December 2018, he wired more than $100,000 from AMS Cleaning’s bank account to a North Carolina business in a fraudulent transaction to prepay for tractors intended for Massey Powersports, federal prosecutors said.

They also Massey attempted to conceal his scheme from investigators by falsely stating that he had no financial interest in AMS Cleaning. They said he had also provided the FBI special agents with a detailed, false story about this fraudulent story.

In response to a federal grand jury subpoena, Massey created and submitted a fictitious $1 million contract to supposedly show AMS Cleaning was sold to a fictitious company prior to his scheme.

Finally the government did their job to protect the consumers of Florida.
09/29/2022

Finally the government did their job to protect the consumers of Florida.

Wednesday’s order came amid widespread concerns about how the Category 4 Hurricane Ian will affect an already-troubled insurance market.

09/26/2022

Florida's Department of Financial Services sought to be appointed receiver for FedNat Insurance Co.

From The Weather Channel Android App:
09/24/2022

From The Weather Channel Android App:

Here's what we know, and don't yet know, about this latest storm, Ian. - Articles from The Weather Channel | weather.com

05/27/2022

DeSantis signs condo safety bill after building collapse
by The Associated Press 27 May 2022
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DeSantis signs condo safety bill after building collapse
by Brendan Farrington

Florida will require statewide recertification of condominiums over three stories tall under new legislation Republican Gov. Ron DeSantis signed into law Thursday as a response to the Surfside building collapse that killed 98 people.

But while the measure was hailed by lawmakers, the senator who represents Surfside, Democrat Jason Pizzo, warns there’s a lot more to do - and the state doesn’t have enough structural engineers to handle the workload required to make sure all the state’s high-rise condominiums are safe.

“Tell your nieces and daughters and sons to go study engineering,” Pizzo said.

The governor’s signature came the day after the House unanimously passed the bill during a special session originally called to address skyrocketing property insurance rates. The condominium safety bill was added to the agenda Tuesday and immediately passed by the Senate.

Recertification will be required after 30 years, or 25 years if the building is within 3 miles (5 kilometers) of the coast, and every 10 years thereafter. The Champlain Towers South was 40 years old and was going through the 40-year-recertification process required by Miami-Dade County when it collapsed last June.

At the time, Miami-Dade and Broward counties were the only two of the state’s 67 that had condominium recertification programs.

There are more than 1.5 million condominium units in Florida operated by nearly 28,000 associations, according to a legislative analysis conducted earlier this year, Of those, more than 912,000 are older than 30 years and are the home to more than 2 million residents.

Pizzo said there are about 650 certified structural engineers in Florida. And there’s a high demand for them on new construction alone. Most of the provisions of the law will take effect in 2024, so there is some time to prepare, Pizzo said.

“We’re going to be back in regular session at least one more time before any of this really kicks in, which gives ample time to tweak, amend, hear from the public and people on the ground,” said Pizzo, who is hosting a public forum on the new law with other legislators next month.

He said that the state Department of Business and Professional Regulation doesn’t have enough staff to handle condo regulation.

“They’re operating on bare bones,” he said. “When it comes to life safety issues, I’m just not comfortable that the same agency that licenses manicurists are also licensing engineers for buildings ... They need to be well resourced.”

The bill would require that condominium associations have sufficient reserves to pay for major repairs and conduct a study of the reserves every decade. It would also require condominium associations to provide inspection reports to owners, and if structural repairs are needed, work must begin within a year of the report.

Similar legislation failed during the regular session that ended in March.

Meanwhile, a final settlement agreement is expected Friday that will pay at least $96 million to homeowners with condos in the Surfside building but whose families suffered no loss of life.

The condominium legislation was attached to a bill that would forbid insurers from automatically denying coverage because of a roof’s age if the roof is less than 15 years old. Homeowners with roofs 15 years or older would be allowed to get an inspection before insurers deny them coverage.

While some Democratic lawmakers complained that the special session on insurance didn’t go far enough to help relieve homeowners, they did praise the addition of the condominium safety legislation.



The Associated Press

View our website at www.ddrclaims.com and if you need help fill out our contact us and we will reply within 24 hours.
09/24/2021

View our website at www.ddrclaims.com and if you need help fill out our contact us and we will reply within 24 hours.

WE ADVOCATE FOR YOU, We help MAXIMIZE your insurance claim and protect your interests after a property loss caused by a fire, flood, any type of damage or natural disaster. DID YOU KNOW? Public Adjusters collect NO FEES until your case is settled with your insurance company. All fees collected by yo...

05/04/2021

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