Breaking News
More () »

Tampa Bay and Sarasota's Leading Local News: Weather, Traffic, Sports and more | Tampa Bay and Sarasota, FL | WTSP.com

Florida says it's busted a $42 million insurance fraud ring

The suspects filed 23,000 false claims for procedures that were never done, officials say.
Credit: FDLE

Ten people were arrested, and four people are still being sought after a $42 million insurance fraud ring was busted, state officials announced Wednesday.

The suspects used stolen doctors' identities to file more than 23,000 fraudulent claims after setting up 15 fake clinics and storefronts across Florida, officials said. 

Two of the locations were in Tampa: Alliance Care Corp. and Efigen Medical Inc., according to officials.

In all, $42,742,852 in services were billed, even though no medical procedures were performed. 

The accused ringleader is Jorge Valido, a former Miami doctor. He is still at large.

The arrests were announced by Florida's Chief Financial Officer Jimmy Patronis and the Florida Department of Law Enforcement.

“Insurance fraud is not a victimless crime and fraud like this drives up insurance costs for every Floridian," Patronis said. "Stolen identities, fake clinics, and stealing $42 million – this was an elaborate fraud scheme and ultimately consumers are on the losing end

Make it easy to keep up-to-date with more stories like this. Download the 10 News app now.

Have a news tip? Email tips@wtsp.com, visit our Facebook page or Twitter feed.