The Texas Department of Insurance has awarded $100 million in reward money to individuals who helped expose fraud in the state’s credit union system.
A lawsuit filed in January by the Texas Attorney General’s Office alleges that the fraud led to the theft of more than $150 million from the credit union.
In a statement, TIGTA President and CEO Mike McFarland said the reward was “a first in Texas history.”
“It’s a clear example of the TIGTRA team working hard to hold credit unions accountable for their actions,” McFarion said.
“The reward is another testament to the strong partnership TIGTS has built between TIG and the Texas Department, and to the tireless efforts of the Texas attorney general’s office, which has made it a priority to root out credit union wrongdoing.”
The award is in addition to $20 million in compensation for the fraud.
The TIGA’s Office of Fraud Prevention and Investigations is the lead investigator in the fraud investigation.
The TIGSA said the state has made $25 million in rewards available to those who participated in the investigation.
The credit union in question, the Texas Association of Credit Unions, was taken over by a group called Credit Alliance International.
The credit union’s CEO, Brian Goss, was arrested in May and pleaded guilty to fraud charges.
In October, the AG’s office said that it would not file criminal charges against Goss.
In December, Goss was sentenced to a year in prison.
The Texas Department for Insurance says the credit unions have paid $60 million in fines, restitution and other compensation.
The AG’s Office said in a statement that the money was awarded to individuals and organizations that helped the TGA and the TSA investigate the credit agency.