Clearwater Man Faces Insurance Fraud Charges, Investigators Say

A 51-year-old Clearwater man and four other Tampa Bay residents face charges related to organizing an unlicensed insurance business allegedly to defraud customers.

Tampa Bay Business Journal reports that the state Division of Insurance Fraud accuses Preferred Staffing of America of "knowingly [misleading] consumers into believing that [the] company was a licensed professional employer organization and could provide workers’ compensation insurance coverage to client companies."

The five arrested are:

• John Acton Lewis of Clearwater

• Otto Biltres of Tampa

• Charles Brown of Tarpon Springs

• Kelly Bree Brown of Tarpon Springs

• Joseph T. Jordan of Palm Harbor

According to Jeff Atwater of the Florida Department of Financial Services, Lewis allegedly operated as an unlicensed insurance agent and referred clients to Preferred Staffing, run by Biltres. Biltres allegedly charged more than $130,000 for service and coverage that was never provided.

The five were booked into Pinellas County Jail.

Anyone with information of suspected insurance fraud is asked to call 800-378 0445. Citizens who provide tips can remain anonymous. The Department of Financial Services to date has awarded almost $275,000 to more than 40 citizens as part of its Anti-Fraud Reward Program. The program rewards individuals up to $25,000 for information that directly leads to an arrest and conviction in an insurance fraud scheme.