PORT ARTHUR, Texas — A 50-year-old man pleaded guilty to charges in connection with a scheme to defraud insurance companies through fraudulent auto and home claims according to a previous U.S. Attorney's Office news release.
Patrick Wayne Bronnon, along with 11 other people, was previously indicted in connection with the scheme according to court documents.
Bronnon pleaded guilty to conspiracy to commit mail fraud and use of a fire in commission of a felony in the Eastern District of Texas according to a U.S. Department of Justice news release.
Those involved would find low value property and purchase it through a 'co-defendant straw purchaser' and intentionally damage the home, usually by fire or water, to collect the insurance money according to the release.
Nine fraudulent fire claims and three fraudulent water damage claims, along with two fraudulent theft claims were filed with several insurance companies on nine different addresses according to the release. The fraudulent payments totaled about $1.7 million according to the release.
The properties were in Port Arthur, Port Neches, Beaumont and Sugarland according to the release.
Bronnon agreed to a 15-year sentence in federal prison, although sentencing will be determined by the court according to the release.
From a U.S. Department of Justice news release:
BEAUMONT, Texas – A 50-year-old Port Arthur, Texas man has pleaded guilty to charges related to an insurance fraud scheme in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Patrick Wayne Bronnon pleaded guilty to conspiracy to commit mail fraud and use of a fire in commission of a felony today before U.S. District Judge Marcia A. Crone.
According to information presented in court, beginning in 2011, Bronnon, and others, began executing a scheme to defraud various insurance companies through fraudulent claims on homes and vehicles. The scheme involved identifying a low value property and purchasing it through a co-defendant straw purchaser. Within a few weeks of a down payment being made, Bronnon or an associate would intentionally damage the home, typically by fire or water, in order to collect insurance proceeds. In total, nine fraudulent fire claims, three fraudulent water damage claims, and two fraudulent theft claims were filed with various insurance companies on nine different addresses, totaling approximately $1.7 million in fraudulent payments. The properties were located in Port Arthur, Port Neches, Beaumont, and Sugarland, Texas.
As part of his plea, Bronnon has agreed to a sentence of 15 years in federal prison although sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the U.S. Postal Inspection Service, National Insurance Crime Bureau and prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and K.P. Kennedy Gates.
