Three years ago, a circuit court judge in Lee County, Florida, sharply rebuked a restoration contractor accused of hiding the true cost of condominium roof repairs in an assignment-of-benefits dispute with Tower Hill Insurance.
The ruling, issued in May 2023, framed the contractor’s billing practices as misleading and raised early red flags for insurers watching AOB claims spiral.
Six months later, the case escalated. The Florida Department of Financial Services, working with local prosecutors, filed criminal fraud and grand theft charges against Ricky McGraw, owner of South Florida Restoration Services.
Then–Chief Financial Officer Jimmy Patronis publicly described the alleged conduct as despicable, linking it directly to premium pressure across the state.
Last week, days before trial was scheduled to begin, prosecutors dropped the case.
The dismissal stunned property insurers and industry advocates who viewed McGraw as a symbol of inflated AOB-driven claims and mass litigation against carriers. Many expected the case to set a precedent. It ended without a verdict.
A Jan. 26 nolle prosequi filing by Lee County Assistant State Attorney John Humphreville offered no explanation for the decision after more than two years of investigation and extensive court activity.
A spokesperson for the prosecutor’s office later cited insufficient evidence, according to local reporting.
Insurance representatives, including Tower Hill officials, declined comment due to ongoing civil litigation involving McGraw and his Stuart-based firm.
Some industry observers speculated that key witnesses tied to the condominium association were no longer available to testify, weakening the prosecution’s position.
McGraw rejected the allegations outright. In an email response, he said the criminal case ended due to lack of evidence and described the prosecution as a witch hunt. He later told the Tampa Bay Times that the process crippled his construction business, claiming years of operational damage without any formal apology.
For Florida property insurers, the contractor’s reported financial distress offers limited consolation. Many still view the dismissal as a missed opportunity to reinforce enforcement against contractors who exploited assignment-of-benefits rules during the 2010s and early 2020s.
That statute, along with one-way attorney fees, was repealed in late 2022.
Insurance groups and regulators credit those legislative changes, along with tort reforms enacted in 2023, with reducing incentives for exaggerated claims and mass litigation.
The reforms helped stabilize a market that had reached a breaking point. Litigation volume, though lower, has not disappeared.
Civil cases tied to McGraw and South Florida Restoration Services continue moving through Florida courts. In early 2025, Tower Hill’s insurance group filed lawsuits in Martin County alleging the company misled homeowners after Hurricane Irma to secure assignments of benefits.
One complaint alleges bait-and-switch tactics, claiming SFR promised roof replacements regardless of whether insurers ultimately paid claims.
According to the filing, the roofs were never replaced. A salesperson named in the case later agreed to a settlement, court records show, though the broader dispute remains active.
State records indicate South Florida Restoration Services still holds an active license through the Florida Department of Business and Professional Regulation.
The license expires in August, leaving regulators, insurers, and contractors watching closely as the remaining cases unfold.
