The Florida Department of Financial Services (DFS) announced the arrest of two men accused of selling fake insurance to a construction company that paid $10,500 for coverage that was never active.
The alleged fraud is said to have lasted for at least four years and ultimately left the company without the mandatory workers' compensation insurance.
The detainees, whose country of origin has not been disclosed, were identified as Yaudat Antonio Ohan, 52 years old and a resident of Hialeah, and Alberto Villaruel, a licensed insurance agent and head of the agency Hialeah Discount Insurance.
According to the official statement from the DFS, the investigation began after a flooring installation company submitted two insurance certificates to a compliance officer of the state agency.
Upon reviewing the documentation, the investigators discovered that the insurer mentioned in the certificates had never issued the corresponding policies.
According to the authorities, Ohan allegedly collected the $10,500 in premiums directly without providing valid coverage to the company.
The investigation also had consequences for the construction company.
According to Insurance Journal, the company received a stop-work order for not having the required workers' compensation insurance for its employees.
One of the defendants had been prohibited from working as an insurance agent since 2002
Ohan was arrested on September 28 and faces charges related to conspiracy to engage in organized crime activities, organized fraud, grand theft, submission of falsified documents, illegal use of telecommunications devices, unlicensed insurance operations, and misappropriation of funds.
According to Insurance Business, Ohan had been permanently barred from working as an insurance agent in Florida since 2002, following a conviction related to organized crime activities.
Despite that prohibition, investigators claim that he continued conducting insurance operations from Hialeah Discount Insurance, a licensed agency where he worked alongside Villaruel.
The former was arrested on October 20 and faces charges of grand theft, organized fraud, and conspiracy to commit organized crime.
According to the DFS investigation, Villaruel was aware that Ohan did not have a license and allegedly allowed him to conduct insurance operations from the agency.
Insurance Journal, which obtained information from the case file, indicates that Ohan held supervisory roles within the establishment, despite not being authorized to act as an agent.
The report also notes that Villaruel sold the agency shortly after being interviewed by the investigators.
According to the sworn statement cited by that outlet, the authorities believe that the operation aimed to hinder the discovery of the alleged illegal activities.
Ohan pleaded not guilty before a Miami-Dade court on October 28. The charges against both men remain subject to the ongoing judicial process.
Florida authorities warn about fraudulent insurance schemes
The Chief Financial Officer of Florida, Blaise Ingoglia, warned in the official statement on October 27 that insurance policies must protect citizens and not serve to enrich those who operate illegally in the sector.
He also stated that authorities will take action against individuals who sell insurance without a license and against those who facilitate such operations.
Companies that purchase insurance without verifying its authenticity may lose the money paid and find themselves lacking coverage when they need to prove compliance with legal requirements.
In Florida, business owners can verify if an agent is licensed through the official licensing portal of the DFS.
Authorities also recommend confirming directly with the insurer that the policy exists and is current, rather than relying solely on the certificate provided by the intermediary.
Suspicion of fraud can be reported to the DFS by calling 1-800-378-0445 or through FraudFreeFlorida.com.
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