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Taxpayers won't pay for money embezzled by Frankel

Missouri taxpayers won't pay a dime even if the money allegedly embezzled by Martin Frankel isn't recovered. Aaron Cummins has that story from Jefferson City --

The Missouri Guarantee Fund, not taxpayer money, will be used to pay the claims of insurance companies bankrupted by Frankel.

According to House Insurance Committee chair Ron Auer the money used to cover defunct insurance companies is actually paid by the insurance companies themselves.

Frankel was arrested in Germany on Saturday. He is believed to have embezzled more that two hundred million dollars from insurance companies in five states including Missouri.

From the state capitol, I'm Aaron Cummins.Date: 09/07/99

By: Aaron Cummins

State Capital Bureau

After the arrest Saturday of alleged embezzler Martin Frankel five states including Missouri are asking questions. Aaron Cummins has that story from Jefferson City --

Frankel is believed to have embezzled more than two hundred million dollars from insurance companies in Missouri, Tennessee, Oklahoma, Mississippi, and Arkansas.

Missouri House Insurance Committee chairman Ron Auer wants to know if there was a way to prevent the felony.

Auer also said that taxpayers will not pay a cent. Instead, there is a fund supported by all licensed insurance companies which will cover any money that is not recovered.

From the state capitol, I'm Aaron Cummins.