consumer fraud unit annual report 2009 presentation to the board of county commission may 12, 2009

Consumer Fraud Unit Annual Report

2009

Presentation to the Board of County Commission

May 12, 2009

• Mission

• Organizational Chart

• Division Background

• Orange County Perspective

• Summary

PRESENTATION OUTLINE

Consumer Fraud Unit provides:

• Mediation of Consumer Complaints

• Criminal Investigation of Consumer Fraud

• Consumer Education

MISSION STATEMENT

• Mission




• Summary


ORGANIZATIONAL CHART

Carlos MoralesConsumer Investigator Supervisor

Walter KraussConsumer Investigator

Melissa AllumsConsumer Investigator

Milagros SerranoAdministrative Assistant

Support Clerk

• Mission




• Summary


• Established in 1978 (County Ordinance 78-21)

• Assisted over 350,000 citizens

• Recovered Over $5M in Non-Litigated Restitution

• 1 out 10 States/County/City operated Consumer Protection Agencies in Florida

• Direct report to the Director of Public Safety & Operates under the Supervision of the State Attorney’s Office, 9th Judicial Circuit

DIVISION BACKGROUND

AGENCY PARTNERSHIP

Florida Consumer Protection Agencies

• Hillsborough County

• Pinellas County

• Pasco County

• Duval County

• Palm Beach County

• Broward County

• Dade County

• Orange County

• Florida Dept. of Agriculture & Consumer Services

• Florida Attorney General Office

2008 DIVISION HIGHLIGHTS

• 11,326 Consumer Contacts

• 62 Special Investigations

• Collected over $500,000 in Non-Litigated Restitution

• The internet continues to generate high number of complaints

• Approximately 40% of complaints are from the Hispanic Community

• Participated in a Joint Unlicensed Contracting Sting and statewide sweep with the Florida Department of Business and Professional Regulation (DBPR)

• Mission




• Summary


ORANGE COUNTY PERSPECTIVE

2008 Top Complaint Categories


Complaint Categories

• Advance Fee• Appliance Repairs• Auto Repairs / Sales• Car Rental Agencies• Consumer Services• Internet• Franchise or Pyramid Schemes• Health Studios• Home Improvement / Repairs• Landlord / Tenant – Mobile Homes

• Merchandise Sales• Towing Companies• Moving Companies• Travel Services• Work at Home Scams• Investments• Loans / Credit Cards• ID Theft• Real Estate• Non- Regulated Private

Schools


Operational Procedures

• Received complaint in person, by mail, fax or Internet

• Send complaint to business (allow 3 to 4

weeks to respond)

• Based on response (or lack of) determine

if issue is a civil or criminal matter


Operational Procedures

Civil Complaint

• Mediate• Provide victim with letter to file in civil or

small claims courtCriminal Complaint

• Prepare case for prosecution with the State Attorney’s Office

Regulatory Agency

• Refer complaint to appropriate regulatory agency


Consumer Fraud Statutes

• 501 FS Unfair & Deceptive Trade Practices

• 817 FS Fraud Statutes

• 489 FS Contracting

• 825 FS Exploitation of Seniors

• 812 FS Theft

• 559 Part IX FS Motor Vehicle Repair

• 501.601 FS Telemarketing

• 817.568 FS Identity Theft

• 501.001 FS Home Solicitations


Construction• Most common criminal complaint filed by office• Largest amount of loss • Office proved highly effective in the filing of

construction cases• Since January 2004

- 194 Cases received at State Attorney’s Office- 146 Files filed (76%)

Internet /Auctions• Most companies received from the IFCC

(Internet Fraud Complaint Center)

• Most numerous complaint worked

• Average loss to consumer - $1,800

• Difficult to investigate and prosecute


Motor Vehicle Repairs• Work closely with DOACS & HSMV to resolve complaints

• Office serves as clearinghouse for complaints filed• Multiple complaints from minorities and seniors

Advance Fees• Misrepresentation is the most common

reason for these type of crimes

• Multiple local, state and federal agencies are

used to clear these cases

• Multiple types of scams used to prey on victims


Towing• Consumers can file complaints in reference to non-consent tows in unincorporated Orange County

• By ordinance, office will investigate and recommend code enforcement action or take additional action against tow operators as deem appropriate

Identity Theft• Office provides information and initial

guidance to ID theft victims

• Most cases are referred to law enforcement agencies (LEA) for investigation

• Office has filed ID theft charges where unlicensed individual uses license number of

licensed contractors


Other Common Frauds

Traveling Public • Merchants • Time Share Re-sales

Sub-Prime Crisis• Real Estate Scams

Investment Scams• Affinity Frauds

Traditional Frauds• Lottery/Checks/Employment


ESF 18 (Business & Community)

• To provide timely information to the business community during times of major disasters

• Assist in the establishment of Business Recovery Centers

• Work in conjunction with Orange County Neighborhood Services that perform similar function to Residential Communities

• When possible, participate in community events

to inform the community of ESF 18 functions


2008 Community Awareness

• Provided 85 Consumer Education presentations

• Over 10,000 citizens received consumer fraud information

• Continued participation with Orange County Senior programs and organizations

• Frequent presentations with local media


Impact in County2005

• 3,973 Foreclosures Filings

2008• 26,131 Foreclosures Filings (651% Increase)

• Most foreclosures due to the Economy (Not Crime Related)

Orange County Consumer Fraud Unit

• 21 Cases in 2008• 29 Cases as of April 2009

Orange County Sheriff’s Office• 280 Cases Last 2 years• Average loss $150,000

Florida Attorney General’s Office• 249 Cases in Past 2 years


Enforcement Efforts

• Joint Agency Enforcement (AG)• REIT (OCSO)

Enforcement Areas

• Refinance Fraud• “Fake” Government Loan Modification Programs• Lease / Rent to Buy Schemes• Bankruptcy Scams• Debt Elimination Schemes• Telemarketing Related Scams• Employment Scams

• Mission




• Summary


Orange County Consumer Fraud

Unit

Website:

REFERENCE

orangecountyfl.net

Consumer Fraud Unit Annual Report

2009

Presentation to the Board of County Commission

May 12, 2009

consumer fraud unit annual report 2009 presentation to the board of county commission may 12, 2009

Documents