The sentencing of an Allstate insurance adjuster and his co-conspirator in Texas accused of diverting $1.3 million in claims payments into their own pockets was delayed until August at the request of defense attorneys.

Assistant U.S. Attorney Judith Patton said the U.S. District Court in San Antonio granted a request by the defense for a continuation of the sentencing proceedings. A new date was set for Aug. 11.

The two, Chandler S. Bruton, an adjuster for Allstate, and Roland F. Villarreal, were charged in a 22-count indictment last year with insurance fraud conspiracy, wire fraud, and money laundering. Both men pleaded guilty in the case.

According to court documents, Mr. Bruton is alleged to have swindled as many as 400 Texas policyholders of claims money in a scheme involving Mr. Villarreal's "purported construction business." Policyholders were underpaid with small amounts for claims, while large checks were issued to Mr. Villarreal for supposed work on claimants' homes.

According to the indictment Mr. Villarreal's company performed no work or substandard work on claimants' premises.

The case has lead to a wrongful termination suit filed by Fred Klecka, a member of Allstate's special investigative unit, who alleges the company fired him for cooperating with FBI investigators in the case.

The suit alleges that Allstate knew about the scheme and wanted to avoid the possibility of federal authorities discovering that others in the company were involved and that the company knew about the scheme. It also alleges the company never informed policyholders or attempted to make the claimants whole.

Allstate flatly denied Mr. Klecka's charges, saying it fully cooperates with investigators.

Special Reports /

Adjuster's Sentencing Delayed In Allstate Case

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