John Tesseyman III of Tyler, Texas has been arrested on four felony charges after a raid of his Old Bullard Road office, and stands accused of bilking millions of dollars in bogus general liability insurance policies from various companies.
According to the Tyler Morning Telegraph, Tesseyman is being held in the Smith County Jail, and is charged with three first-degree felonies, misapplication of property totaling more than $200,000, securing execution of a document by deception over $200,000, theft of more than $200,000, as well as one third- degree felony, unauthorized insurance.
Officials with the Travis County District Attorney’s Office and the Texas Department of Insurance (TDI), which had been investigating Tesseyman since January, raided the agent’s office earlier this month, seizing files, boxes and computers. They found that Tesseyman reportedly sold policies to individuals and companies engaged in indoor and outdoor fireworks displays, as well as selling fireworks.
Tesseyman has also been accused of selling bogus policies to companies that transport petroleum products on U.S. highways.
Since the State Fire Marshal’s Office requires general liability coverage of at least $500,000 for fireworks displays, companies affected must find new carriers or cancel fireworks engagements.
Tesseyman remains jailed on bonds totaling $400,000.
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