HOUSTON, TX — Seven people who were arrested in the Houston-area in connection with the state's largest known scheme to defraud insurance companies by intentionally flooding homes and filing bogus claims have pleaded guilty or have been convicted on fraud charges. The story was reported by the Texas Department of Insurance at its website (www.tdi.state.tx.us).
The scheme is said to have cost insurers — and, through higher rates, their policyholders — more than $5 million.