Insurance agent faces fraud charges
An Oklahoma City insurance agent faces felony fraud charges, accused of falsifying workers' compensation policy forms for roofing companies. Oklahoma Attorney General Scott Pruitt's Workers' Compensation and Insurance Fraud unit filed eight felony charges against Fernando Espinosa, 27, of Norman, accusing him of making false or misleading statements in insurance applications and obtaining money by false pretenses. The attorney general's office accuses Espinosa of miscoding workers' compensation insurance policy applications so that roofing companies would appear as “paint and paper hanging” companies to obtain workers' compensation insurance. The insurance company doesn't issue workers' compensation policies to roofing companies and considers the policies to be invalid. According to the charges, there were several cases where Espinosa would issue certificates of insurance to clients that were not backed by actual policies. If convicted, Espinoza could face up to seven years in jail and, or a fine up to $10,000.
GMX secures loans amid bankruptcy
GMX Resources Inc. this week received debtor-in-possession financing after filing for Chapter 11 bankruptcy protection Monday. At a hearing Wednesday, the court approved up to $50 million in term loans to keep the company operational through its bankruptcy proceedings. “We've done exactly what we intended to do, which was to seek the interim financing and gain approval to operate and pay our vendors and continue to do the normal course of business,” said Alan Van Horn, GMXs's investor relations manager. Following the bankruptcy announcement, the New York Stock Exchange delisted the Oklahoma City company. GMX common and preferred shares now trade over the counter under the tickers GMXRQ and GMXPQ, respectively.