Florida CFO Jeff Atwater today announced the arrest of an Oviedo business owner for over-billing State Farm Insurance Co.for fraudulent sinkhole claim repairs. Michael Hodge, owner of A&M Contracting Co., is charged with multiple counts of racketeering and insurance fraud involving billings of materials he never used to repair properties in Orange, Seminole and Volusia counties.

“This case is a perfect example of the type of insurance fraud that drives up insurance rates across the state for hard-working Floridians,” says Atwater. “We must remain diligent in rooting out these fraudsters to protect Florida homeowners and the honest businesses operating in our state.”

An investigation by the Florida Department of Financial Services, Division of Insurance Fraud, revealed that from 2004 to 2009 A&M Contracting over-billed State Farm for grout that was never used to repair sinkhole damage to properties in the Central Florida area. It was later discovered that Hodge received nearly $182,000 in compensation for materials which he never purchased or used to repair the properties. Hodge was arrested by fraud detectives on Aug. 12 and released after posting bail. If convicted, he faces up to 25 years in prison.