Florida Whistleblowers Expose Insurance Fraud Amid Hurricane Ian Recovery

Hurricane Helene has devastated Florida with its 140 mph winds, destroying homes and businesses, and at least 115 people have died across six states (as of September 30, 2024). On top of this, many Flordians are still recovering from the aftermath of Hurricane Ian. Not only from the physical damage but from battles with their insurance companies, who they say are failing them in their time of need.

In a recent report from 60 Minutes, two whistleblowers, who are licensed insurance adjusters, have stepped forward claiming that insurance companies deliberately altered damage reports following Hurricane Ian, shortchanging homeowners by tens of thousands of dollars.

One such homeowner, Jeff Rapkin, experienced the full brunt of Ian’s fury firsthand. As 150 mph winds tore through his North Port home, leaving it in ruins, he did what any responsible policyholder would: he filed an insurance claim. The initial assessment from an adjuster suggested the house needed to be completely rebuilt. But when the insurance payout arrived months later, it was a mere fraction of what was expected—just $9,000 after deductibles and fees. “I started to pray for Mr. Jordan Lee’s untimely demise because I was so angry,” Rapkin confessed.

This anger wasn’t misplaced. Jordan Lee, the adjuster who initially assessed the damage, was just as shocked when he discovered that his original report, which estimated over $230,000 in necessary repairs, had been doctored. What the Rapkins received was a revised report stating the roof could simply be repaired, a decision made by a desk adjuster who had never even seen the property. “It was totally different,” Lee told 60 Minutes. Lee found that out of 46 reports he had handled, 44 had been changed, all to lower the payouts.

Ben Mandell, another licensed adjuster, has come forward as well. “It was a deliberate scheme,” said Mandell, whose own reports were manipulated. He revealed that adjusters were even instructed to leave damage off their assessments, especially when it came to roofs. “They were asking me to do something that was illegal,” Mandell emphasized.

The issue extends beyond a few isolated cases. Mandell and Lee testified before Florida lawmakers, calling the practice “systematic criminal fraud.” At least six insurance carriers are implicated, with some whistleblowers alleging the changes cut payouts by as much as 98%.

We’re witnessing yet another catastrophic hurricane strike Florida and the state’s insurance crisis remains a painful reminder that rebuilding after a storm isn’t just about repairing physical damage—it’s also about fighting for the compensation homeowners rightfully deserve. Florida’s insurance market has been in turmoil for years, with nine companies collapsing since 2021.

Those still operating, it seems, aren’t above cutting corners and altering claims to their benefit.

The whistleblowers are clear on one thing: this is fraud, and it’s happening across the state. And the implications are severe. As attorney Steven Bush put it, “If you really want to see change in the industry, put somebody in handcuffs.” Bush, who represents several whistleblowers, has turned over evidence of this insurer fraud to state investigators. Yet, two years after Ian, Florida has not made a single arrest. This lack of action has left many wondering why fraud investigations seem to move swiftly when homeowners or contractors are involved, but stall when insurance companies are accused of wrongdoing.

Meanwhile, homeowners are preparing to fight back. Because while the homeowners are struggling to rebuild their lives, the insurance companies, it seems, are betting that many won’t stand up to them. As Bush put it, “They’re playing the odds, and they are winning.”

So what can be done now? With Florida’s residents now bracing for more devastation from Hurricane Helene, it’s more important than ever to raise awareness about this ongoing crisis. Whistleblowers are stepping up to expose the injustices happening behind closed doors, but real change won’t come until the insurance companies face true accountability.

As Doug Quinn, executive director of the American Policyholders Association, said, “You are not allowed to take somebody who has dutifully paid premiums for years, and when they need their insurance, cheat them.” It’s time to stand with the whistleblowers and demand justice for Florida homeowners. The insurance companies shouldn’t get to walk away unscathed—especially when people’s lives and homes are at stake.

Lastly, if you have information on insurance fraud and would like to report it, please don’t hesitate to contact us to speak to a member of the Constantine Cannon whistleblower lawyer team for a free and confidential consultation.