Allen Weintraub was caught and arrested for fraudulently earning money by selling hurricane insurance during hurricane season in Miami, Florida (an obvious target for this sort of insurance). Allen was preying on innocent consumers looking to protect themselves during a time when natural disasters are at the forefront of people’s minds. A total of $100,000 was made from unsuspecting insurance consumers that had bought worthless hurrican insurance from Weintraub.
Tom Gallagher at the Development of Financial Services’ Division of Insurance Fraud had this to say about the incident “I applaud our fraud detectives for moving quickly to put this scam operator behind bars. 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.”
The fraudulent company ran by Weintraub was not licensed but DID have employees that were licensed. While an employee may be licensed consumers may jump to the conclusion that the company itself is licensed, but this is not the case, consumers should be ware and take action to make sure that they’re dealing with a verified licensed professional company.
Not surprising is the fact that this isn’t Weintraub’s first run in with the law as he recently was ordered to pay more than $1 million in restitution and fines by the Securities and Exchange Commission. Let’s hope that this time Weintraub gets what he deserves so that he is denied any more possible chances of making money off of breaking the law.
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