Texas Regulators: Houston Attorney Pleads Guilty to Insurance Fraud
July 28, 2016
Texas officials say a Houston attorney has pleaded guilty at the conclusion of a multi-year investigation into a criminal organization that set up fake auto accidents and medical bills.
Investigators with the Texas Department of Insurance, the Texas Department of Public Safety, and the Houston Police Department say Ikechukwu Nweze pled guilty to engaging in organized criminal activity and insurance fraud and was sentenced on July 28.
As part of his plea agreement, Nweze will surrender his law license.
Jesse McClure, special assistant district attorney for Harris County, is one of several prosecutors TDI has imbedded at D.A. offices around the state. He said the investigation began in 2013, after a tip from an informant. Undercover officers with DPS and Houston Police met with a Nweze associate who organized the fake car crash.
Nweze was trying to collect around $56,000 in medical costs from the insurance company for just this one staged accident.
“The level of complexity in this criminal endeavor went beyond the typical staged accident scheme. They had co-conspirators at a local health clinic generating fake medical bills,” McClure said.”
The owner of the health clinic involved, Patrick Osuagwu, pled guilty in February to insurance fraud associated with the case.
After the fake accident, Osuagwu encouraged the undercover officers to fill out forms saying that they had received chiropractic treatment, when in fact they had received no medical care.
He said this is far from a victimless crime, as such cases result in higher insurance costs for consumers.
Source: TDI
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DISCIPLINARY ACTIONS 2012
On Jan. 12,
Ikechukwu Nweze [#00792725], 59, of Houston, received a two-year, partially probated suspension effective March 1, with the first year actively served and the remainder probated. An evidentiary panel of the District 4-B Grievance Committee found that Nweze neglected the legal matter entrusted to him and failed to keep his client reasonably informed about the status of her legal matter, to promptly comply with reasonable requests for information, to hold in a trust account funds belonging to his client, and to promptly deliver to his client funds that she was entitled to receive. Nweze violated Rules 1.01(b)(1), 1.03(a), and 1.14(a) and (b). He was ordered to pay $1,725 in attorney’s fees.