Allen E. Weintraub of Miami, Fla. has been arrested for collecting more than $100,000 for worthless hurricane insurance he sold to at least 45 consumers. The arrest was announced by Tom Gallagher, Florida’s CFO, who warned homeowners three weeks ago to beware of windstorm insurance policies sold by the Global Insurance Group.
Weintraub was booked into the Miami-Dade County Jail on 45 counts of grand theft and 45 counts of transacting insurance activity without a certificate of authorization, in addition to one count of organizing a scheme to defraud. Bond was set at $510,000.
“I applaud our fraud detectives for moving quickly to put this scam operator behind bars,” said Gallagher, who oversees the Department of Financial Services’ Division of Insurance Fraud. “Selling bogus hurricane insurance to people in the middle of hurricane season is reprehensible. I am relieved that we were able to shut this scheme down before more Floridians were defrauded and left vulnerable to storms.”
Weintraub used licensed agents to sell his bogus policies to homeowners and businesses. In one case, the agent cancelled legitimate insurance and switched to a Global policy. Gallagher said that Floridians dealing with a licensed agent should still verify that the company offering coverage is licensed. To check on the license status of a company or agent, consumers should visit www.fldfs.com, and click on Verify Before You Buy, or call the department’s helpline at 1-800-342-2762.
Weintraub’s arrest, at his multi-million dollar home in Golden Beach, follows on the heels of recent action taken against him by the Securities and Exchange Commission which barred him from the securities industry and ordered him to pay more than $1 million in restitution and fines.
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