Texas Mutual Awarded More Than $7.5M in Civil Fraud Case

February 12, 2007

A Travis County jury found that Gary C. Quintinsky of Houston committed civil fraud against Texas Mutual Insurance Company in a conspiracy case, according to the insurer.

Texas Mutual announced that the jury awarded the company more than $5 million in actual damages and $2.5 million in punitive damages. The award is expected to exceed $8 million after prejudgment interest is calculated. This marks the largest premium fraud verdict in Texas Mutual Insurance Company history.

The lawsuit alleged that Quintinsky was involved in a conspiracy with other individuals and companies to defraud Texas Mutual Insurance Company of approximately $5 million through workers’ compensation policies issued to United Crane Inc., International Holdings Inc., United Crane Sales & Leasing Inc., Austin United Inc., Conroe United Inc., United Payroll Services Inc., Management Payroll Services Inc., United Fleet Maintenance Inc. and United Crane Rental Inc.

Texas Mutual, represented by attorney Robert M. O’Boyle of Strasburger & Price LLP, presented evidence of fraud involving false payroll records and other information given to Texas Mutual. The scam resulted in an undercharging of premium in the millions of dollars.

Source: Texas Mutual Insurance Company

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