South Texas Well Service Charged with Fraud

May 12, 2003

Travis County District Judge Brenda Kennedy found South Texas Well Service Inc. guilty of insurance fraud. She ordered Michael W. Harvey’s Rockport-based company to pay over $7,000 in restitution to Texas Mutual Insurance Company.

Donna Crosby, the assistant Travis County district attorney prosecuting the case, filed information alleging that South Texas Well Service persuaded Purdy Boat Company to file its workers’ compensation claims on Purdy Boat Company’s policy.

The scheme allegedly defrauded Texas Mutual Insurance Company of approximately $7,379; however, Texas MutualSM investigators stated that the claims could have easily exceeded $1 million if left unchecked.

South Texas Well Service pleaded no contest to reduced misdemeanor charges.

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