⏱ 2 min read
A massive homeowners insurance fraud scheme in Florida has been brought to justice, with the final defendant, Lisette Patricio, 64, of Davie, sentenced to 45 months in federal prison. The scheme, which lasted for years, generated over $6 million in illicit proceeds and resulted in the cancellation of nearly 4,000 homeowners insurance policies across the state. Patricio pleaded guilty to conspiracy to commit bank fraud and making and filing false federal income tax returns.
The scheme involved targeting financially distressed homeowners facing foreclosure or loan modification proceedings and using their identities to fraudulently cancel their homeowners insurance policies without their knowledge. Arturo Morales, the mastermind behind the scheme, used licensed insurance agents to prepare false paperwork to process the unauthorized cancellations. The conspirators then concealed the fraud by falsely claiming to have obtained replacement coverage.
Patricio has been ordered to forfeit $1.78 million in fraud proceeds and pay $593,033 to the IRS. The sentence marks the end of a years-long prosecution that held every participant accountable and recovered millions in criminal proceeds. U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida said, ‘This final sentence closes a years-long prosecution that held every participant accountable and recovered millions in criminal proceeds.’
The case was investigated by the IRS Criminal Investigation (IRS-CI), Florida Field Office, and prosecuted by the U.S. Attorney’s Office for the Southern District of Florida. Special Agent in Charge Ron Loecker of the IRS-CI said, ‘This case proves how effective our collaboration with state and local partners can be when financial fraud threatens our communities.’
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Florida
- Location: US
- Source: DOJ Press Release
