Almost three years ago, in May of 2023, a circuit court judge in Lee County, Florida, sharply criticized a restoration contractor, accusing him of concealing the truth.
ost of condominium roof work in an assignment-of-benefits claim with Tower Hill insurance.
Six months later, the state Department of Financial Services and local claims brought criminal fraud charges against the contractor, Ricky McGraw, of South Florida Restoration Services, charging him with insurance fraud and
grand theft. Florida’s chief financial officer at the time, Jimmy Patronis, now a Congressman, called the intentional fraud “despicable” and a reason behind rising premiums in the state.
Last week, just before the McGraw case was set to go to trial, it was dismissed. The move has left some property insurance carriers and their advocates frustra
ted that the man who had been called the “poster boy” for questionable claim amounts—and for hundreds of AOB lawsuits against warranties—will not see jail time.
A Jan. 26 nolle prosequi court filing by Lee County Assistant State Attorney John Humphreville did not provide an explanation for why the charges were dropped after two years of evidence gathering and dozens of court filings. A spokes
person for the prosecutor's office said it was due to a lack of evidence, according to a local news report.
Insurance representatives in the state, including officials with Tower Hill, declined to comment due to other pending civil suits involving McGraw and his Stuart, F
Florida-based SFR. Some in the industry speculated that people with the subject condominium association may no longer be available for testimony.
“Criminal case is over for lack of evidence. Enough said,” McGraw said in an email to Insurance Journal. “The witch hunt is over.”
McGraw told the Tampa Bay Times that the prosecution has ruined his construction company.
“Two and a half years of my life has essentially put my company in the dumps, and they don't even send out an apology letter,” McGraw told the Times.
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If true, the SFR financial problems could be some comfort to Florida property insurers and could be seen as another win against contractors who reported to
ok advantage of the state’s assignment-of-benefits law in the 2010s and early 2020s. That law was repealed in late 2022, along with one-way attorney fees. Insurance groups and regulators have credited the changes and 2023 tort-reform
measures with disincentivizing fraud and exaggerated claims and excessive claims litigation, helping to revitalize a Florida insurance market that was in deep distress.
But much litigation continues to work its way through the courts. That includes several insurance suits filed against McGraw and SFR.
In Martin County, for example, Tower Hill’s group of insurance companies early in 2025 filed civil lawsuits against SFR Services, charging the company with misleading homeowners after Hurricane Irma in order to gain assignments of benefits.