Texas Man Pleads Guilty To Buy-and-burn Insurance Fraud Scheme

A Port Arthur, TX man has pleaded guilty to charges related to an elaborate insurance fraud scheme, which involved purchasing properties to purposefully damage for claims.

Patrick Wayne Bronnon, 50, pleaded guilty to conspiracy to commit mail fraud and use of a fire in commission of a felony in the Eastern District of Texas. He pleaded before US District Judge Marcia A. Crone.

In 2011, Bronnon and his co-conspirators started a scheme to defraud insurers by claiming on homes and vehicles they had purposefully damaged. According to information presented in court, the scheme involved purchasing low-value property through a straw purchaser – who was also named as a defendant in the case. Several weeks after a down payment had been made Bronnon or an associate of his would intentionally damage the home, either through water or fire damage.

Bronnon and his associates managed to pull off a total of nine fraudulent fire claims, three fraudulent water damage claims, and two fraudulent theft claims, each filed with different insurance companies on nine different addresses. They managed to defraud about $1.7 million in insurance payments.

Port Arthur News reported that as part of his plea, Bronnon has agreed to a sentence of 15 years in federal prison.