Man defaulted on $4 million loan and then faked his death, a company attorney says
A Galveston bankruptcy court has rescinded $14 million in life insurance on a Clear Lake businessman who investigators say faked his death after being declared in default on a $4 million loan, an attorney said Friday.
Farmers New World Life Insurance Co. will refund the premiums on two $7 million insurance policies on the life of Larry Michael Nixon to creditors in his involuntary bankruptcy, Farmer’s attorney Deana Freeman said.
Nixon, 55, remained in federal custody in West Virginia on Friday awaiting arrangements for his transport to Houston to face fraud charges, a spokeswoman for the U.S. Marshals Office said.
The U.S. Attorney’s Office announced this week that deputy U.S. marshals arrested Nixon, accused of securing loans for cranes he never purchased, following his release from jail in Wood County, W.Va., after serving a state sentence for fraud.
Farmers sued to have the life-insurance policies rescinded after learning that Nixon, owner of Delta Crane Co., did not die in an August 2003 boating accident.
Court rescinds suspect’s life insurance
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