August 20, 2024
Fraud Unit investigator helps stop human smuggling ring
While working out of the FBI field office in South Texas, Fraud Unit investigator Sgt. Chris helped the federal agency uncover a $2 million human smuggling operation.
Sgt. Chris was investigating an insurance fraud scam when he came across Luis Enrique Moctezuma-Acosta and Scarlett Fuentes-Gavarrete. Moctezuma-Acosta is a Mexican National and Fuentes-Gavarrete is a Honduran National living illegally in Mission near the Texas-Mexico border.
"As we followed the money and did interviews, we found these people that were buying properties – and then found out what they did for a living," Sgt. Chris said.
Moctezuma-Acosta and Fuentes-Gavarrette could afford to buy properties thanks to money raised running a human smuggling ring. Their network, reaching from Honduras to Boston, smuggled 2,400 people into the U.S.
Once people were smuggled across the Rio Grande into the U.S., the self-titled “LEMA” smuggling organization used several methods to circumvent U.S. Border Patrol checkpoints, including tractor trailers, commercial planes, and guides to walk travelers around the checkpoints. They laundered their proceeds through businesses they created, including a used car lot.
"We paused the primary case,” Sgt. Chris said, “and worked on this case to get these people in custody and made sure that everybody was safe.”
In March, Moctezuma-Acosta and Fuentes-Gavarrette pleaded guilty to money laundering and conspiracy charges. In July, they were each sentenced to 20 years in federal prison. They face deportation after they're released.
Authorities seized over $1.5 million in cash and $2.7 million in luxury vehicles, jewelry, and property. Two other family members pleaded guilty to money laundering charges. The investigation identified one immigrant who died while being smuggled.
Sgt. Chris said of the couple: "I’m glad they’re off the street. They had no concept of the harm they were doing."
Sgt. Chris joined TDI in 2016 after 30 years in law enforcement. Chris works closely with the FBI combatting financial crimes and insurance fraud.
"I love what I do," he said. “I like helping my community and people who can’t help themselves.”
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August 1, 2024
Tips to avoid fraudulent insurance sales scams
Avoid fraudulent sales scams with these tips:
Beware of unexpected calls. If you didn’t call them first, the salesperson probably found your information on a mailing list.
Don’t buy over the phone. The risk of fraud is greater if you buy insurance over the phone or online. Hang up on callers if something doesn’t sound or feel right.
Never be rushed. Be wary of offers for a “last-chance deal" or other appeals to make a quick decision. Take your time. If someone calls, emails, or mails you an offer, decline it. Next, look it up online to see if it’s true and the company is real.
Watch for scam artists. Be wary of people who say they are from Medicare, Social Security, or any government agency. Medicare doesn’t make sales calls. Also, health plans and annuities are never offered at a discount or sale price.
Keep all documents and take notes. Keep any paperwork you get from an insurance company. Write down the names of people you talk to and details of conversations you have.
Verify agents and companies. Before you buy insurance, call TDI to make sure the agent and company are licensed. We can also tell you a company’s financial rating. Call our Help Line at 800-252-3439. You also can call us to report insurance fraud or ask questions about insurance.
A TDI financial crime investigator helped nab a fraudulent radio host who lured people into signing over their annuities. Hear more on our latest Texas Insurance Podcast.
Learn more
- How to avoid scams aimed at older adults
- How to avoid contracting scams
- Buying a house? Beware of seller impersonation fraud.
- Insurance fraud guide
July 31, 2024
Forensic accountant follows the money to help victims
Vivian says her job as a financial analyst performing forensic accounting is like piecing together a puzzle. Typically, the pieces are bank statements, business records, and other official documents.
It’s Vivian’s challenge to make the pieces fit.
Recently, Vivian helped TDI's Fraud Unit stop two doctors – Desi and Deno Barroga of Dallas – who were overprescribing opioids and falsely billing health plans.
Fraud Unit investigators got Vivian subpoenas for the records she needed. Next, she combed through the doctors' personal and business bank records to trace the $45 million they billed and the $9 million they were paid.
"It's my job to find where that money is and where it's going," Vivian said
TDI's investigators used what Vivian found to help federal agencies, including the FBI, build a criminal case. The doctors pleaded guilty and face up to 10 years in prison.
Aside from stopping criminals, the Fraud Unit also wants to get restitution for victims. Courts can order criminals to pay restitution.
Vivian said: "One way agencies can do that is by seizing their assets. To be able to seize those assets, we have to prove that they were bought with dirty money.”
Before joining TDI, Vivian traced properties and assets for an accounting firm. Her college degree was in finance with an emphasis on business evaluations.
She loves taking rows and columns of numbers on a spreadsheet and making sense of them.
"That's what I love about this job: making sense of the numbers for everyone else. It's my contribution to the team effort."
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July 25, 2024
Fraud Unit warns local officials about scams
Members of TDI Fraud Unit’s Catastrophe Response Team met with Roman Forest Police Department staff.
Out-of-town scam artists are often the first to knock on doors after disasters. TDI gives tips to avoid scams, like hiring local contractors, getting written bids, and checking references.
Our toolkit for preventing fraud has tips and flyers that city and county officials can use to warn residents about contractor fraud.
After Hurricane Beryl, the TDI Fraud Unit’s Catastrophe Response Team visited city and county officials to talk about the toolkit and fraud prevention.
“Unfortunately, after a big storm we see an influx of criminal activity from scam artists looking to profit from people who are trying to start the recovery process,” said Chris Davis, who leads the Fraud Unit.
To report suspected fraud, call our Help Line at 800-252-3439 or visit our fraud page.
Learn more
- Preventing fraud after a storm: a toolkit for city and county officials
- How to avoid contracting scams
- Do you know the signs of a contracting scam?
March 27, 2024
Buying a house? Beware of seller impersonation fraud.
One of the fastest-growing real estate scams targets vacant or unoccupied houses for sale.
It starts with someone forging documents to sell a house they don’t own. They list a house below market value and accept a quick offer – with a preference towards cash buyers – to steal the money from the sale.
Put your guard up if a seller:
- Tells your agent they only want a cash buyer.
- Doesn’t show up for closing or asks to sign documents electronically.
- Asks for a remote notary at signing and wants to use their own notary.
- Asks that the money from the sale go directly to them.
Some tips:
- Visit the house you want in person. Only the real homeowner can give your agent the key.
- Ask your agent to use a trusted in-person notary at closing.
- Buy title insurance. Your real estate agent will likely recommend it and your mortgage company will probably require it. Title insurance protects you from problems with an ownership title.
Report fraud to the Texas Attorney General, the Federal Trade Commission, and your local police.
Learn more
- What is title insurance? Why do I need it for my new house?
- Red Flags and Best Practices from the Texas Land Title Association
- FAQ: Title insurance
March 3, 2023
Insurance fraud could happen to you
Do you think insurance fraud rarely happens or mostly on TV dramas?
Think again.
Last year, the Fraud Unit at the Texas Department of Insurance (TDI) got more than 16,000 reports of possible fraud. The unit, which has officers around the state, worked on nearly 400 criminal investigations. It currently has more than 170 ongoing investigations in 40 Texas counties.
Tips to protect yourself from fraud:
- When shopping for insurance, check that the agent you’re working with has a state license. You can call the TDI Help Line at 800-252-3439 or look up the agent on TDI’s website, www.tdi.texas.gov/agent/agent-lookup.html.
- Be wary of buying a policy from anyone who only accepts cash or who wants to meet you only at your home or in a parking lot.
- If someone tells you that you must act today or you'll lose the offer, that's usually a bad sign. Legitimate insurance plans won’t have purchase deadlines. Don't be rushed when shopping for insurance.
- After you buy a policy, call the insurance company to confirm that the policy is in your name.
- If you’re asked to cash in an annuity or some other life insurance policy to buy a different annuity or policy, don't take the bait. Annuities and life insurance products are generally worth more the longer you hold onto them.
Listen to more on stopping insurance fraud in Texas in The Texas Insurance Podcast, featuring Chris Davis of TDI’s Fraud Unit.
View podcast Q&A: What’s insurance fraud?
Learn more
January 5, 2023
Texans, especially older adults, should beware of phone, online scams
Your phone rings, you answer, and someone with a friendly voice asks for your bank account or Social Security number.
Hang up. It’s probably a scam.
Fraudsters tend to target older people, who are often more trusting and vulnerable. Older people are also more likely to talk to someone they don’t know.
In 2021, more than 6,700 Texans over age 60 reported losing more than $159 million to fraud.
Common scams:
- A caller offers to fix a non-existent computer problem or to renew a fraudulent software or security subscription. The caller might even transfer you to fake “customer service” staff.
- A caller pretending to be a grandchild calling from another country and needing hundreds of dollars fast. Once money gets sent outside the United States, it’s very hard to recover.
- A call or email that says you’ve won a sweepstakes or lottery. The catch: You need to pay thousands of dollars to get the bigger prize.
- Someone on the phone or sending an email adopts a fake identity to gain affection and confidence. The scammer builds a relationship with the victim to steal their money.
How do you avoid these and insurance scams? Listen to The Texas Insurance Podcast, featuring tips from Tim Morstad of AARP Texas.
View podcast Q&A: How older adults can avoid scams
Learn more
- How to avoid scams aimed at older adults
- Fraud tips for older Texans (video)
- How a radio show host defrauded investors of millions (video)
August 10, 2022
TDI fraud investigation leads to another guilty plea from a former NFL player
Former Dolphins draft pick Jonathan Rex Hadnot pleaded guilty last week to his role in a scheme to defraud the Gene Upshaw NFL Health Reimbursement Account (HRA). The account was designed to help former pro players with some of the cost of health issues associated with their time in the league.
Hadnot pleaded guilty in a Harris County court to submitting false medical claims for reimbursement. He collected nearly $30,000 from the HRA for medical treatments he never received. He’ll have to repay that money and serve five years’ probation.
The case was investigated by Texas Department of Insurance (TDI) investigators and prosecutors working with the Harris County District Attorney’s Office. Eight former players have been identified in Harris County in connection with the scheme, as well as a Houston athletic trainer.
You can report suspected insurance fraud by calling TDI’s Help Line at 800-252-3439.
Read more about the multi-year investigation and the individuals involved:
Houston athletic trainer and former NFL players indicted for fraud
January 24, 2022
Don’t ‘puff’ your cold car or truck outdoors; keep thieves away
It’s tempting in cold weather to start your car or truck and then scoot indoors while it turns toasty. This is known as “puffing” because steam puffs out of the exhaust pipe while your ride warms up.
But beware. Thieves may see your unattended vehicle as a drive-away opportunity.
Over a recent three-year period, more than 17,000 Texas cars and trucks were stolen with keys or fobs left inside. And that count may be low because many drivers don’t admit to making the mistake. These incidents also aren’t noted in police reports or insurance claims, according to the National Insurance Crime Bureau.
Other tips to avoid break-ins and thefts
- Lock doors and windows as soon as you enter your vehicle.
- Park in well-lit areas.
- Use a loud alarm or an anti-theft device a thief can see.
- Install a catalytic converter cover or lock.
Learn more
- Auto theft and insurance: How to protect your ride
- Tips to avoid car break-ins (video)
- Car burglaries and break-ins are increasing. Here’s how to protect your car (podcast)
October 14, 2021
Protect your information from scams during Medicare open enrollment
Did you get a phone call from someone offering a free COVID-19 vaccine or a gift if you give them your Medicare information? It’s probably a scam. A health plan will never call you out of the blue and ask for personal information.
Medicare open enrollment—the time of year you can sign up for or make changes to a Medicare plan—is from October 15 to December 7. Which also makes it prime time for scammers.
Never give your Medicare information to someone you didn’t expect to get a call from. If you aren’t sure, call 800-252-9240 to find your Area Agency on Aging, or check with your local State Health Insurance Assistance Program.
About 4 million Texans have health insurance coverage through Medicare. In our new video, we talked to Yvette McVeigh with the Area Agency on Aging. McVeigh explains what to do when your plan doesn’t cover the medications you need or let you see the specialist who’s right for you. She also had great advice for avoiding scams.
April 19, 2021
New podcast looks at increase in auto thefts
Auto thefts were up in Texas and across the nation last year. In our new podcast, we talk to Sgt. Tracy Hicks with the Houston Police Department’s Auto Theft Crimes Task Force about what you can do to protect your car or truck from burglaries and theft.
Thieves often break into cars to look for guns, Sgt. Hicks said. Be especially careful when going to a gun range or store because thieves may be watching the parking lots to identify potential targets. He suggested getting a car safe if you carry guns or other valuables in your car.
Catalytic converters are another hot commodity for thieves, who sell the precious metals inside. Catalytic converters easy to steal and hard to identify. Hybrid cars are often targeted because their catalytic converters – and the metals inside – are usually cleaner than on gas cars. You can get a catalytic converter lock or cover installed to make it harder to remove.
Check out our podcast for more about the latest trends in auto theft and how to protect your car or truck.
We have also a video interview with Sgt. Hicks and information about insurance coverage for auto thefts and burglaries.
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