Former public adjuster Abraham M. Blumberg of Miami, Fla. made some “adjustments” to his clients' funds that have landed him in court.
Blumberg, 35, had his public adjuster's license revoked on Nov. 3, 2010, marking the beginning of his legal issues. About four months later, on March 1, 2011, Blumberg was arrested and immediately taken to Miami-Dade Circuit Court, where he pled guilty to organizing a fraud scheme.
The investigation that led to his arrest revealed Blumberg's number crunching crime, in which he took $363,617 in clients' funds that were supposed to be held in trust, and used them to cover internal thefts, illegal gambling, and drug debts for employees and a member of his family. Authorities came to the courtroom armed with statements from 82 victims of Blumberg's blunder, as well as insurance claim files, and bank account records.
With all of that evidence against him, it's no surprise that the case was wrapped up the same day he was arrested. Blumberg will serve 364 days in county jail, 30 years probation with the first two to be under community control, and will pay full restitution plus $15,000 in total costs. Blumberg's sentence doesn't go into effect for one year though, so he'll have some time to calculate just how much he owes for his dirty dealings.
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