Longview, Texas – A local attorney has been hit with a 41-month federal prison sentence for orchestrating a scheme that bilked insurance companies and healthcare providers out of nearly $929,000. Steven Rushing, 55, pleaded guilty on February 15, 2013, to mail fraud charges in the Eastern District of Texas.
Rushing’s fraudulent scheme began in January 2007, where he claimed to represent clients injured in accidents by negotiating settlements with civil defendants or their insurance providers. He promised a portion of the settlement proceeds would go towards paying off clients’ medical bills. However, once Rushing received the settlement checks, he pocketed the money meant for medical providers, instead.
According to court documents, Rushing even sent a fraudulent letter to Farmers Insurance on June 20, 2011, falsely promising to pay off liens in exchange for a specific settlement of $6,836.00 – a promise that was never kept.
The investigation into Rushing’s activities was conducted by the Longview Police Department and the Federal Bureau of Investigation, with Assistant U.S. Attorney Jim Noble handling the prosecution.
In addition to his prison sentence, Rushing was ordered to pay $929,076.29 in restitution to the victims of his fraud. The case serves as a stark reminder of the lengths some will go to exploit legal and financial systems for personal gain.
Rushing’s conviction underscores the ongoing battle against white-collar crime and the importance of vigilant law enforcement agencies in protecting the public from such fraudulent activities.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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