Claims News Service, Dec. 16, 11:19 p.m. EST -- An insuranceadjuster who stole more than $1.2 million from her employer isgoing to spend the next 12 years in prison after pleading guilty toa first-degree felony charge.

Brenda Buckaloo-Merchant adjusted claims for Unitrin BusinessInsurance in Dallas, Texas, but her paycheck from the companywasn't her only source of income. According to Kyson Johnson, leadprosecutor from the Texas Department of Insurance's (TDI) fraudunit that handled the case, Buckaloo-Merchant had been cheating thecompany since late 1999 through a scheme that involved writingclaim checks to a fictitious health-care provider. She cashed thechecks and kept the money -- until she was arrested before beingsentenced in Sept. 2008.

According to Johnson, the scheme unraveled whenBuckaloo-Merchant's supervisor conducted spot checks on claim filesand discovered an out-of-place medical provider. The astutesupervisor noticed that the provider was in Texas, but the claimantlived in the Northeast. When the supervisor investigated andultimately found no basis to support the payment to the medicalprovider, she reported it to her company's SIU and began workingwith TDI.

A first-degree felony in Texas can carry between a five and 99years prison sentence, along with a maximum fine of $10,000.Johnson explained how the defendant ended up with a sentence of 12years.

"It was actually an agreed plea," said Johnson."[Buckaloo-Merchant] pleaded guilty with no agreement from thestate, meaning she was going 'open' to State District Court JudgeTracy Holmes for punishment. We initially offered 15 years, and thedefendant sought probation from Judge Holmes at the open plea.After discussions with her attorney -- where we explained thenature of the evidence against her and the factors that we feltwere aggravating -- the defense attorney inquired as to whether theState would be willing to agree to the 12 year sentence or not. TheState agreed and Judge Holmes followed the plea bargain."

In addition to the prison sentence, Buckaloo-Merchant wasordered to pay $1.2 million in restitution, along with a fine of$3,000.

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