Property & Casualty 2008 Compliance Conference. Reporting Suspected Insurance Fraud. Dennis Pompa Associate Commissioner 512-463-6492. Reporting Requirements – Texas Ins Code §701.051.
Paul Banks purchased Equine Mortality Insurance on 18 horses and inflated their purchase price to the insurer. He created false bills of sale for each horse increasing the actual purchase price by several thousands of dollars. Subsequent claims were filed after the horses were mysteriously found dead, resulting in him collecting approximately $350,000.00 in benefits.
Banks was convicted in Federal Court, sentenced to 21 months confinement in Federal prison, and ordered to pay $217,500.00 in restitution.
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