FL Adjuster Sentenced for Insurance Fraud and Forgery

A public insurance adjuster in Hernando County, north of Tampa, was sentenced to four months in jail and nine years probation last week for forging his client’s name on a settlement check, giving her a bad check in return and solicitation to commit insurance fraud.

Karim Hayavi obtained a $270,000 settlement from Citizens Property Insurance for his client, Ruth Pullen. Pullen’s house was being threatened by a sinkhole. Both Hayavi and Pullen were required to sign the check.

Hayavi and Pullen previously reached an agreement which would the adjuster 15 percent of whatever amount was collected from the insurance company. In this case, it was about $40,000. Hayavi gave Pullen a check for $230,000 and kept the insurance company’s check for $270,000.

Pullen refused to endorce the original check until Hayavi’s check to her cleared the bank. That check bounced and Pullen discovered that Hayavi had forged her signature and deposited the $270,000 check in his own account.

Jurors were able to view a videotape that Pullen made of Hayavi’s promise that he would not sign her name to the check and well as his acknowledgement that it would be a felony offense if he were to do so.

The videotape also revealed Hayavi’s attempt at defrauding the insurance company. Citizens had agreed to pay $30,000 for Pullen’s living expenses (on top of the $270,000) while the sinkhole repairs were completed.

On video, Hayavi suggested that Pullen submit a phony lease to the insurance company as evidence that she was living somewhere other than the damaged home during repairs. The monthly rent on the fake lease was $7,000.

Hayavi was sentenced to 120 days in the county jail. Because Hayavi has young children, the judge will allow the sentence to be served on weekends. Hayavi was also sentenced to nine years of probation and has lost his aduster license.

Insurance fraud, mortgage fraud and other types of white collar crime are generally believed to be on the rise in Florida. As the economy dips, the temptation to commit these types of crimes increases. We can expect to see more white collar crimes prosecuted in Hillsborough and Pinellas counties and the surrounding areas in 2009.