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.
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