The Texas Department of Insurance was never informed about anAllstate adjuster who siphoned off $1.3 million in company fundsand scammed 408 insureds, a TDI spokesman said yesterday.
"We were not aware of that Allstate adjuster situation," saidTDI's Jerry Hagins, responding to a National Underwriter inquiry tothe department. However, he added, "at the time of this incident[1996-2002], Allstate, or any insurance company would not have beenrequired to have reported it to us."
The adjuster in the case--Chandler S. Bruton--is due to besentenced June 23 in federal court in San Antonio on a racketeeringcharge. He pleaded guilty to a seven-year-long scheme in which hefunneled money that was supposedly going to pay for policyholders'repair work to a corrupt contractor, Roland F. Villarreal, who didlittle or no actual work on the damaged properties.
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