Court Finds So. Texas Well Service Guilty of Fraud

May 20, 2003

Travis County District Judge Brenda Kennedy recently found South Texas Well Service Inc., a Rockport-based company owned by Michael W. Harvey, guilty of insurance fraud. The company was ordered to pay $7,000 in restitution to Texas Mutual Insurance Company.

According to Texas Mutual, 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 Mutual 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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