A lawsuit and internal investigation are underway at New Mexico’s Office of the Superintendent of Insurance (OSI). The state has allocated close to $500,000 to examine what officials describe as “potential irregularities” in the insurance fraud fund. Instead of focusing on external entities, the investigation is centered within the agency itself.
The probe is specifically examining how funds intended for investigating insurance fraud are collected and spent.
Paul Gessing, president of the Rio Grande Foundation (RGF), commented on the situation. “It’s ironic in this case that an agency that’s tasked with investigating fraud is itself being accused of fraud,” he said.
Gessing also discussed details about OSI’s funding mechanisms as part of a recent story on the issue.
