The Louisiana Department of Insurance filed a lawsuit in late December 2009 against Infinity Surety of Louisiana Inc., Infinity Surety Agency LLC and George D. Black (collectively, Infinity Surety) alleging the firm has been operating as surety insurance company without the required licenses. The department reported that it had received a number of complaints about the company.
Louisiana insurance regulators are accusing Infinity Surety of selling worthless construction bonds for bids on hundreds of millions of dollars in government projects. Insurance Commissioner Jim Donelon said at a press conference announcing the lawsuit that Infinity Surety of Louisiana Inc. wasn’t licensed to operate as an insurance company when it sold bonds to contractors bidding on public works projects.
A court ordered Infinity Surety and George D. Black stop conducting the business of insurance and authorized the department to take control of all property, bank accounts, funds and records on behalf of those persons injured or affected by Infinity Surety’s actions.
State and local governmental agencies that accepted surety bonds from Infinity Surety face serious risk of loss, Donelon said. The department alleges Infinity Surety sold bogus bonds for bids on a $34 million airport expansion project in Monroe, a $51 million project at a high school in New Orleans, a $6.9 million project for a community center in Plaquemines Parish and other projects.
Donelon said his office is investigating whether any companies that purchased bonds from Infinity Surety were involved in the alleged scheme. He said his office also notified federal prosecutors about the allegations.
The commissioner said the department’s filing against Infinity Surety is similar to its action three years ago against United Assurance, AA Communications and Gwen Moyo, in a surety bond case that resulted in Moyo’s federal conviction.
Infinity Surety is based in Saginaw, Texas.
Associated Press reports contributed to this story.
Was this article valuable?
Here are more articles you may enjoy.
Coverage Needed: Hundreds of Thousands in SE Now in Flood Zones With New Maps 
House Collapses Into Flood-Swollen River Near Minnesota Dam Amid Storms 
US P/C Underwriting Results: Two Years in a Row Over $20 Billion in the Red 
Guidance and Insurance Implications for the CDK Global Cyberattack From This Issue
