HOUSTON MAN PLEADS GUILTY TO INSURANCE FRAUD FOR SELLING BOGUS POLICIES

October 10, 2011

Christopher  Purser  of  Houston  pled  guilty  to  one  count  of  conspiracy  to  commit  wire  fraud  in  an insurance fraud scheme.  The plea capped federal prosecutors’ investigation into bogus insurance policies issued by Purser to apartment complexes, condominium associations, bars and restaurants.  According to federal investigators, Purser disguised his identity when selling the policies between 2004 and 2006, after Texas insurance regulators banned him from the insurance business in 2003.

Purser’s scheme began to unravel when the Ethan Allen capsized on Lake George in New York State in 2005, killing 20 of the 47 elderly passengers on board.  Shoreline Cruises, Inc., the owner of the boat, submitted the claim on a policy the Purser sold it.  According to prosecutors, in response to the claim, Pursuer backdated documents to make it appear, falsely, that the policy did not cover the claim.  In fact, prosecutors found that Purser’s insurance company was merely a shell with no assets to cover any claims. Purser could face 20 years in prison.