Texas Closes in on Individuals Defrauding Insurance Companies with Artificial Water/Mold Claims

HOUSTON - The convictions of seven people in the Houston area for attempting to defraud insurance companies with artificially caused water- and mold-damage are potentially just the tip of the fraud iceberg as the Texas Department of Insurance continues investigations across the state.

More arrests are expected in other areas of the state in the weeks following the convictions and guilty pleadings of the seven individuals who were arrested June 27 and either pled guilty or were convicted on fraud charges on Oct. 9. Sentencing is scheduled for Dec. 12.

According to Mark Hanna, a spokesperson for the Texas Department …