Texas Woman Sentenced for $1.2 Million Fraud

Texas District Court Judge Tracy Holmes has sentenced former insurance company employee Brenda Buckaloo-Merchant to 12 years in prison.

Buckaloo-Merchant had previously pleaded guilty to a first degree felony - the theft of $1,208,316 while working as an adjuster for Unitrin Business Insurance Co. of Dallas. A first degree felony carries a maximum sentence of 99 years in prison and a minimum sentence of 5 years imprisonment, and a fine of no more than $10,000.

The indictment and prosecution of Buckaloo-Merchant was the result of an investigation by the Dallas County District Attorney’s Office and Texas Department of Insurance’s (TDI) Fraud Unit..

On Sept. 25, 2008 Buckaloo-Merchant appeared in court before Judge Holmes and reportedly told the court that she used her position at Unitrin to steal over $1.2 million dollars from the insurance company.

In describing the scheme to Judge Holmes, Buckaloo-Merchant said she wrote checks from Unitrin to a fictitious health care provider that was, in reality, Buckaloo-Merchant. In addition to the 12-year prison sentence, Buckaloo-Merchant has been ordered to pay restitution of $1,208,316 to Unitrin and a $3,000 fine.