Anatomy of Public Entity Insurance Corruption

“The only way that we would be able to get into any school district was to be able to directly have a relationship with the decisionmakers — the school board, the trustees. We wouldn’t waste time on people where we couldn’t make money. We would contribute to the opponent of those (board members) who did not vote for us.” – Criminal Turned FBI Informant

Several years ago headlines were made in San Antonio and beyond of a FBI seven year probe into bribery schemes involving an insurance broker and a insurance consultant working with Texas school districts.

The article in the link below lays out how “working the politics” can bring lucrative insurance contracts to those who practice the art in less than legal ways.

The insurance community is small and it seems everyone knows everyone else by reputation. The characters named in this case were well known to us as active among Texas school districts for many years. They consistently landed quite a few districts through competitive bidding throughout those years.

Rumors abounded within the industry for years. A former secretary represented seeing the consultant dropping by the insurance broker’s office once a month to pick up his commission check. More rumors abounded but we didn’t put much thought into it at the time.

Over the years we have seen corruption like this with similar endings. You would think the publicity alone would stop the practice but it hasn’t. It continues to this day.

We will write a book about what we know and have it published once we assume room temperature. We are not looking forward to the publication date.

READ ARTICLE HERE: Another FBI informant testifies about under-the-table dealings