After pleading guilty to insurance fraud and forgery last month, Cody Damron, the former owner of Cowboy Capital Insurance, turned himself in to the Erath County Jail on Monday.
Damron, 40, will spend the next 10 days behind bars as part of his plea agreement which also places him on deferred adjudication for the next eight years.
Damron is also required to pay a $500 fine, court costs, restitution, perform 300 hours of community service and surrender all licenses issued by the Texas Department of Insurance.
Scott Osman was Damron’s attorney and said his client has paid back all the victims in full.
Damron’s legal woes began after April 2015, when strong storms that included hail and high winds damaged several homes and businesses across the county. As several of Damron’s clients began to file claims, they learned that they were uninsured.
A former employee of Cowboy Capital Insurance blew the whistle and told the E-T that Damron was pocketing the money from his clients and not writing policies.
“He was robbing Peter to pay Paul. I know that’s what he was doing because he did it to my own son,” the former employee said. “I can’t tell you the number of calls his office received after the storm hit. There were literally hundreds of calls coming in. After suspecting something wasn’t right, I did some research with one of the big carriers and figured out what was happening.”
That led to a lengthy investigation involving the Texas Department of Insurance, which provided hundreds of documents to the E-T outlining the case against Damron.
Eastland County District Attorney Russ Thomason prosecuted the case.
One of Damron’s former clients, who asked not to be named, said they had no idea the case had been resolved until they were contacted by the E-T on Monday.
“We are glad this is over and relieved to know that he will not be able to do this to anyone else,” they said.