Florida regulators halt unlicensed insurance operation

Florida regulators have issued a cease-and-desist order against Hydrogen Deep LLC and The Wave Risk Retention Group LLC after discovering the entities were conducting insurance business without state authorization. The companies, which operated under names including The Wave and The Wave Insurance, targeted watersports and marine-livery businesses in the Destin area.

Two men, Christopher Jason Brossett and Brady Allen Howard, were arrested in connection with the scheme. Authorities allege the pair collected more than $100,000 in premiums but failed to pay claims, instead diverting the funds for personal use. Brossett was arrested in June on charges including grand theft while acting as an insurer, and Howard was arrested in July for allegedly conspiring with Brossett.

Insurance Commissioner Mike Yaworsky stated that operating without a required license is unacceptable and can cause immediate danger to public health and safety. While risk retention groups are not required to be licensed in every state if chartered in a domiciled state, the Florida Office of Insurance Regulation found no record of these companies being granted a certificate of authority in Florida.