NU Online News Service, May 14, 11:31 a.m.EDT

The heat is getting turned up on fraudsters in Texas as thestate's Department of Insurance is backing the designation of asecond county insurance fraud prosecutor and investigator with theaim of adding more in the future.

The Texas Department of Insurance (TDI) has agreed to pay for anew insurance fraud prosecutor and investigator at the HarrisCounty District Attorney's Office.

Mark Hanna, spokesman for the Texas Committee of Insurance Fraudand the Insurance Council of Texas, says Harris County, home toHouston, has been a "hot bed of insurance fraud of all kinds" fromauto insurance to workers' compensation.

"I know there are lots of insurance companies who are very happyto have someone to turn to—someone who speaks their language andwill not file away their concerns because the resources don'texist," says Hanna. "We've needed someone dedicated to insurancefraud at the attorney's office for a long time."

A similar program between TDI and prosecutors in Dallas Countyhas worked to convict 250 insurance fraudsters, which has resultedin restitution to victims of $7 million.  

Harris County District Attorney Patricia Lykos says insurancefraud has been "an ever-growing problem in Harris County, but it'sabout to come to an end."

More insurance fraud-focused prosecutors are coming. Hanna saysa prosecutor will be announced later this month in Bexar County,home to San Antonio, and other major cities may follow.

The TDI has a fraud bureau, but must refer cases to aprosecutor. This arrangement, paid for through the TDI's budget,gives a point of contact in each county prosecutor's office and theability to actively prosecute insurance fraud.

Hanna says fraud in Texas costs insurers, and ultimatelypolicyholders, billions of dollars per year. About 10 percent ofauto insurance premiums go to fighting or paying for fraud, Hannaadds.

Insurance Commissioner Eleanor Kitzman, who left a similar position in South Carolina for Texas last year,says she is intent on not only seeking the highest restitution andmost prison time for those who commit fraud, but she wants theirnames to be known.

"There will be no confidential settlement," she says. "This willbe publicized. This is really not effective unless people knowabout it. That's our goal."