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July 28, 2016

Houston Lawyer Pleads Guilty to Insurance Fraud

Investigators with the Texas Department of Insurance, the Texas Department of Public Safety, and the Houston Police Department wrapped-up a multi-year investigation into a criminal organization that set up fake auto accidents and medical bills.

Ikechukwu Nweze, a Houston attorney, pled guilty to engaging in organized criminal activity and insurance fraud and was sentenced today. As part of his plea agreement, Nweze will surrender his law license. 

Jesse McClure, special assistant district attorney for Harris County, is one of several prosecutors TDI has imbedded at D.A. offices around the state. He said the investigation began in 2013, after a tip from an informant. Undercover officers with DPS and Houston Police met with a Nweze associate who organized the fake car crash.

“It was elaborate,” McClure said. “The level of complexity in this criminal endeavor went beyond the typical staged accident scheme. They had co-conspirators at a local health clinic generating fake medical bills.”

He said this is far from a victimless crime. “Each of these cases is a drain on the system and ultimately result in higher costs for insurance consumers.” Nweze was trying to collect around $56,000 in medical costs from the insurance company for just this one staged accident.

The owner of the health clinic involved, Patrick Osuagwu, pled guilty in February to insurance fraud associated with the case. After the fake accident, Osuagwu encouraged the undercover officers to fill out forms saying that they had received chiropractic treatment, when in fact they had received no medical care. 

TDI investigators are certified peace officers and work closely with authorities around the state when investigating fraud cases. You can report suspected cases of insurance fraud by calling TDI’s Consumer Help Line at 1-800-252-3439 or by visiting www.tdi.texas.gov/fraud/report.html.



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Last updated: 07/28/2016

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