I have spent more than 20 years defending people across the Emerald Coast, and insurance fraud charges catch my clients off guard more often than almost any other case I handle. Most people never intended to commit a crime. They rounded up on a repair estimate, reported a boat as stolen when it had really just been sold to a friend, or filed a claim for storm damage that happened before the policy started. In Florida, that single decision can turn into a felony. If you or someone you love has been contacted by an investigator or arrested on an insurance fraud charge in Fort Walton Beach, Destin, Crestview, or anywhere in Okaloosa, Walton, or Santa Rosa County, you need to understand exactly what you are facing before you say another word.
Facing an insurance fraud investigation or arrest? Call Lupella & Rehr at +1 850-362-6655 for a free, confidential consultation before you speak with an investigator or your insurance company again.
What Is Insurance Fraud Under Florida Law?
Insurance fraud charges in Florida arise under Florida Statute 817.234, and the definition covers more conduct than most people expect. A person commits insurance fraud when they knowingly present, or help someone else present, a false, incomplete, or misleading statement connected to an insurance claim or a policy application, with the intent to obtain money or a benefit they are not entitled to. Florida courts have made clear that prosecutors do not have to prove the insurance company actually relied on the false statement or paid out the claim. Making the statement is often enough on its own to support a charge.
Two broad categories cover most of the cases that come through our office at Lupella & Rehr. Application fraud happens when someone leaves out or falsifies information while buying a policy. Claims fraud happens when someone submits a false, inflated, or staged claim after a loss. You can read more general background on how these charges get built on our insurance fraud defense page.
David Rehr spent years prosecuting these cases in Okaloosa County before joining our firm, and he has seen how patiently investigators build a file. They often gather recorded statements, repair invoices, and text messages long before an arrest happens, which is exactly why getting a defense attorney involved early matters so much.
Common Insurance Fraud Scenarios We See Along the Emerald Coast
- Reporting a vehicle or boat as stolen when it was actually sold, hidden, or damaged another way
- Inflating the value or extent of storm and hurricane damage on a homeowner’s claim
- Filing duplicate claims with two different insurers for the same loss, a pattern we cover in our double dipping insurance article
- Staging a slip and fall or a car accident to collect a payout
- Falsifying details on a mortgage or homeowner’s insurance application
Felony Degrees and Penalties for Insurance Fraud in Florida
Florida grades insurance fraud charges by the dollar amount connected to the false statement or claim, similar to how the state grades theft. The higher the amount, the more serious the felony and the longer the potential prison sentence.
| Felony Degree | Amount Involved | Maximum Prison Sentence | Maximum Fine |
|---|---|---|---|
| Third Degree Felony | Less than $20,000 | Up to 5 years | Up to $5,000 |
| Second Degree Felony | $20,000 to $99,999 | Up to 15 years | Up to $10,000 |
| First Degree Felony | $100,000 or more | Up to 30 years | Up to $10,000 |
Even a third degree felony conviction follows you for life. It can affect your ability to hold certain professional licenses, pass a background check for housing or employment, and in some cases, own a firearm. For clients with an insurance license, a contractor license, or a security clearance tied to a job at Eglin Air Force Base or Hurlburt Field, the consequences reach even further.
Florida takes these cases seriously in part because of what fraud does to the cost of insurance for everyone else. The Florida Department of Financial Services’ Division of Insurance Fraud investigates thousands of these referrals every year, and according to the National Insurance Crime Bureau, fraud costs the average American family thousands of dollars in higher premiums over a ten year period. That pressure is part of why prosecutors along the Emerald Coast pursue insurance fraud charges aggressively, even when the dollar amount looks small on paper.
How Insurance Fraud Charges Affect Eglin AFB and Hurlburt Field Personnel
For service members stationed at Eglin Air Force Base or Hurlburt Field, an insurance fraud arrest reaches beyond the Okaloosa County courtroom. A felony charge can trigger a security clearance review, and a conviction often leads to separate action under the Uniform Code of Military Justice on top of whatever happens in civilian court. We wrote more about how command finds out about an arrest in our article on whether the military can access your civilian arrest records in Florida.
If you are active duty, a reservist, or a military family member facing this kind of charge, tell your attorney about your clearance status, your rank, and any upcoming deployment or PCS orders as early as possible. That information shapes how we build your defense and how quickly we move. Our page for military personnel facing arrest covers this in more depth.
Schedule a free consultation with Lupella & Rehr today. Call +1 850-362-6655 to speak directly with an attorney about your insurance fraud charge, not a call center.
Possible Defenses to Insurance Fraud Charges
Every case depends on its own facts, but a few defense strategies come up often in the insurance fraud cases we handle:
- Lack of intent to defraud, such as an honest mistake on a claim form or a genuine misunderstanding about what a policy covered
- Insufficient evidence connecting you personally to the false statement, which comes up often in shared-policy or business insurance situations
- Errors made by the insurer or a third-party adjuster that got attributed to the policyholder instead
Because David spent years prosecuting these exact cases before joining the firm, we know how the state builds them and where the gaps usually show up. That perspective shapes how we challenge the evidence, from the first investigative interview through trial if your case gets that far.
Frequently Asked Questions
Is insurance fraud always a felony in Florida?
Yes. Under Florida Statute 817.234, insurance fraud is charged as a felony regardless of the dollar amount, though the degree of felony and the potential sentence increase as the amount involved goes up.
Will I go to jail for a first insurance fraud charge in Florida?
Not automatically. Prosecutors and judges consider the amount involved, your criminal history, and the specific facts of the case. Many first time cases resolve through negotiated pleas, diversion programs, or reduced charges rather than a lengthy prison sentence, but that outcome depends heavily on having an attorney negotiate on your behalf early in the process.
Can an insurance company drop the charges against me?
No. An insurance company can decide whether to pursue civil action or report suspected fraud to law enforcement, but once the state files criminal charges, only the prosecutor’s office controls whether the case moves forward, gets reduced, or is dismissed.
What should I do if an insurance investigator contacts me?
Politely decline to answer questions and contact a criminal defense attorney before you give a statement, written or recorded. Anything you say to an investigator can be used to build the criminal case against you.
If you or a family member has been arrested or contacted about an insurance fraud investigation anywhere in Fort Walton Beach, Destin, Crestview, or Okaloosa, Walton, or Santa Rosa County, call Lupella & Rehr at +1 850-362-6655 today. We offer a free consultation, and the sooner we get involved, the more options you typically have.