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							 Consumer Fraud Unit
    Annual Report
       2009




    Presentation to the
Board of County Commission
       May 12, 2009
    PRESENTATION OUTLINE

• Mission
• Organizational Chart
• Division Background
• Orange County Perspective
• Summary
    PRESENTATION OUTLINE

• Mission
• Organizational Chart
• Division Background
• Orange County Perspective
• Summary
      MISSION STATEMENT

Consumer Fraud Unit provides:

  • Mediation of Consumer Complaints

  • Criminal Investigation of Consumer
      Fraud

  •   Consumer Education
    PRESENTATION OUTLINE

• Mission
• Organizational Chart
• Division Background
• Orange County Perspective
• Summary
     ORGANIZATIONAL CHART



                  Carlos Morales
          Consumer Investigator Supervisor

   Milagros Serrano
Administrative Assistant

     Support Clerk


     Walter Krauss              Melissa Allums
 Consumer Investigator       Consumer Investigator
    PRESENTATION OUTLINE

• Mission
• Organizational Chart
• Division Background
• Orange County Perspective
• Summary
      DIVISION BACKGROUND

•   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
AGENCY PARTNERSHIP
      Florida Consumer Protection
      Agencies

• Broward County      • Hillsborough County
• Dade County         • Pinellas County
• Orange County       • Pasco County
• Florida Dept. of    • Duval County
  Agriculture &
  Consumer Services   • Palm Beach County
• 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)
    PRESENTATION OUTLINE

• Mission
• Organizational Chart
• Division Background
• Orange County Perspective
• Summary
    ORANGE COUNTY PERSPECTIVE

2008 Top Complaint Categories
       ORANGE COUNTY PERSPECTIVE

Complaint Categories
•   Advance Fee                        •   Merchandise Sales
•   Appliance Repairs                  •   Towing Companies
•   Auto Repairs / Sales               •   Moving Companies
•   Car Rental Agencies                •   Travel Services
•   Consumer Services                  •   Work at Home Scams
•   Internet                           •   Investments
•   Franchise or Pyramid Schemes       •   Loans / Credit Cards
•   Health Studios                     •   ID Theft
•   Home Improvement / Repairs         •   Real Estate
•   Landlord / Tenant – Mobile Homes   •   Non- Regulated Private
                                           Schools
     ORANGE COUNTY PERSPECTIVE

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
     ORANGE COUNTY PERSPECTIVE

Operational Procedures
Civil Complaint

   • Mediate
   • Provide victim with letter to file in civil or
     small claims court
Criminal Complaint

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

Regulatory Agency

   • Refer complaint to appropriate regulatory
     agency
       ORANGE COUNTY PERSPECTIVE

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
     ORANGE COUNTY PERSPECTIVE
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
      ORANGE COUNTY PERSPECTIVE
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
   ORANGE COUNTY PERSPECTIVE
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
  ORANGE COUNTY PERSPECTIVE

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
     ORANGE COUNTY PERSPECTIVE
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
     ORANGE COUNTY PERSPECTIVE
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
    ORANGE COUNTY PERSPECTIVE
Impact in County
 2005
    • 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
  ORANGE COUNTY PERSPECTIVE

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
    PRESENTATION OUTLINE

• Mission
• Organizational Chart
• Division Background
• Orange County Perspective
• Summary
  REFERENCE


Orange County Consumer Fraud Unit
           Website:

        orangecountyfl.net
 Consumer Fraud Unit
    Annual Report
       2009




    Presentation to the
Board of County Commission
       May 12, 2009