San Antonio Lawyer Hugh Lappe Scott Sentenced for Health Care Fraud

San Antonio’s 65-year-old attorney Hugh Lappe Scott, Jr. faced the federal justice system today as he was sentenced to six months in prison for his role in Health Care Fraud. United States Attorney Richard L. Durbin, Jr. announced that Scott was also ordered to serve an additional six months of home detention with electronic monitoring.

The sentence, handed down by United States District Judge Xavier Rodriguez, included the requirement that Scott surrender his law license and pay $1,209,692.60 in restitution. Following his imprisonment, Scott will be placed on supervised release for three years.

Scott’s downfall began when he pleaded guilty to a single-count information on January 14, 2016, admitting that he had knowledge of Health Care Fraud against the United States while serving as general counsel for Swiss corporation United Re. He was supposed to represent that United Re administered reinsurance, but he concealed the fact that its reinsurer, Vado AG, could not meet claims made against it.

Under oath during a deposition in January 2010, Scott claimed Vado AG was a reinsurer of United Re when he knew this wasn’t true. His actions were deemed to have hindered the investigation into United Re.

This case was investigated by the Department of Labor and prosecuted by Assistant United States Attorney William R. Harris. The grim tale of Scott’s deceit adds another chapter to the ongoing saga of white-collar crime in Texas.

Scott’s conviction and sentence send a clear message: aiding Health Care Fraud will not go unpunished, and justice prevails even for the most cunning of criminals.