Fraud Allegations Referred to Prosecutor's Office

Texas Mutual Insurance Co. has asked county prosecutors to investigate whether there was criminal wrongdoing by a Houston business executive who was ordered to pay $7.5 million in damages to the carrier in a civil fraud judgment last week. A jury in the 419th District Court awarded Texas Mutual $5,077,390 in actual damages and $2.5 million in punitive damages, with the total expected to exceed $8.2 million with the addition of prejudgment interest, making it the largest premium fraud judgment in the insurer's history, Texas Mutual vice president Terry Frakes reported. The jury found that...