A Houston attorney and two former employees of The Hartford havebeen indicted for a conspiracy in which the lawyer allegedly paidmillions in bribes to the insurer's employees to obtain favorablesettlements for his clients with silicosis claims.

Accused in a 14-count federal indictment in Houston thatincluded charges of conspiracy, mail and wire fraud, and thelaundering of millions of dollars were John Prestage and RachelRossow, who formerly worked at The Hartford, and attorney WarrenTodd Hoeffner.

Mr. Prestage and Ms. Rossow were arrested in Connecticutyesterday, according to the U.S. Attorney's Office of the SouthernDistrict of Texas in Houston.

The indictment charges that between February 2002 and November2004, Mr. Hoeffner bribed the two Hartford employees to recommendthat the company settle silicosis injury claims by Mr. Hoeffner'sclients against the company and its insureds.

Silicosis is a form of occupational lung disease caused byinhalation of crystalline silica dust.

According to the grand jury, Ms. Rossow and Mr. Prestage agreedto pay Mr. Hoeffner more than $34 million to settle his claims.

The two former Hartford employees, in return, received more than$3 million and each a new BMW automobile as part of the conspiracyfrom Mr. Hoeffner, the indictment charged.

The indictment was unsealed yesterday after the arrest of thethree defendants, according to the U.S. Attorney Office.

Mr. Hoeffner was released on a $250,000 bond after appearingbefore U.S. Magistrate Frances Stacy, who set a Sept. 4 trialdate.

Mr. Prestage was ordered released on a $250,000 personalrecognizance bond, while Ms. Rossow's bond is still notestablished, according to the U.S. attorney office.

Mr. Prestage and Ms. Rossow will be arraigned on the indictmentin Houston soon, the U.S. Attorney's Office said.

The wire fraud and mail fraud charges carry a maximum penalty offive years in prison and conviction on the charge of conspiracy tocommit money laundering carries up to 20 years in prison.