THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE RISK MANAGEMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
Funds paid in excess of the minimum statutory bid amount for properties sold at a tax deed sale (Surplus Tax Deed Funds) are held by Broward County for the benefit of statutorily-identified lien-holders of record and the prior property owner. As a result of fraudulent activities, Surplus Tax Deed Funds were incorrectly paid to unauthorized entities. The County was insured for these losses and filed a claim for reimbursement with its insurer, Fidelity and Deposit Company of Maryland (Fidelity). The applicable insurance policy has a $10,000 deductible for the claim. The cost described herein is considered a singular incident with a singular $10,000 deductible.
Fidelity has completed its investigation of the claim and has substantiated the full amount of the County’s calculation of identified losses in the amount of $2,412,308, and approved that amount as covered under the insurance policy. Fidelity requires the execution of the Release and Assignment of Claim (Release) prior to payment of the substantiated claim. The Release is limited to losses identified to date (itemized on Exhibit A of the Release) and does not prohibit the County from supplementing its claim for later-discovered losses. |