Accused Public Adjuster
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2021 - Public Adjuster Accused of Pocketing Policyholder Claim Benefit Payments.
Mitchell Adjusting International, a public insurance adjuster firm, and its operators, Andrew Joseph Mitchell and Kade Austen Mitchell, are facing legal trouble for allegedly retaining insurer payouts. They have been cited by regulators in Texas and Louisiana for their actions and have been criticized by Steven Badger, a Dallas-based attorney.
According to Badger, the trend of public adjusters receiving funding from factoring companies, as demonstrated by Mitchell Adjusting International, is a cause for concern. He argues that public adjusters who sell their future commissions have no motivation to continue working on the claims, leading to longer resolution times and increased lawsuits. Badger also suggests that these public adjusters may inflate their estimates, further delaying claims resolution and exacerbating the problem.
The Texas Department of Insurance is seeking to revoke Andrew Joseph Mitchell's public adjuster license for theft of $335,082.56 from seven policyholders, while Kade Austen Mitchell's license has been suspended in Louisiana for forging endorsement signatures on two checks worth $267,000. Mitchell Adjusting International has received funding from multiple financial organizations, some of which have filed liens against the company and won judgments, including Yes Capital Group's successful claim for $128,506.37.
New York City attorney Tara N. Pomparelli is also seeking legal action to recover $250,000 on behalf of 5G Funding from Mitchell Adjusting International and the Mitchells. These events are a clear indication of the company's legal difficulties and its potentially damaging impact on the insurance industry and the claims resolution process.