Travelers Drops Tennessee County’s Fraud Protection Policy

Officials say an insurance company is not renewing Shelby County’s policy protecting against financial crimes, a move that stems from an alleged embezzlement scheme at Chancery Court that led to $1 million in losses.

Travelers Insurance told the county in an Aug. 16 letter that current coverage will cease Nov. 1. The letter follows an earlier claim by the county asking Travelers to cover the $1 million Chancery Court loss, The Commercial Appeal reports.

Chancery Court clerk Dewun Settle resigned Tuesday. An investigation by The Commercial Appeal found that Settle allowed an employee suspected of stealing $1,063,000 to stay on the payroll for two months after a report in February revealed possible wrongdoing.

Settle has denied allegations that he repeatedly ignored auditors’ recommendations to shore up financial controls.