Plaintiff insurance company alleges fraud against Ohio painting business over fraudulent checks

Southwest Marine and General Insurance Company has taken legal action against an Ohio-based painting company and its owner, alleging fraudulent activities that resulted in significant financial losses. The complaint was filed by Southwest Marine and General Insurance Company on November 20, 2025, in the United States District Court for the Northern District of Ohio against Laura Bissett and her business, Bissett’s Quality Pro Painting, LLC.

The case centers around allegations that Laura Bissett deposited six fraudulent checks totaling $275,000 into the account of her company at Community Star Credit Union between March 24 and April 1, 2025. Southwest Marine claims that Bissett knowingly deposited these checks despite being aware that no money was owed to her company by the check issuers. Following the deposits, Bissett allegedly withdrew the funds for personal use or for her company’s benefit. Community Star Credit Union discovered the fraud on April 7, 2025, and managed to recover a portion of the funds but still suffered a loss of $84,419.21.

As a result of this incident, Southwest Marine indemnified Community Star Credit Union under an insurance policy covering losses due to fraud. Consequently, Southwest Marine became subrogated to Community Star’s rights and is now pursuing recovery from Bissett and her company. The insurance firm accuses them of fraud, conversion (wrongful possession), and unjust enrichment. “Defendants’ conduct was wanton and willful,” states the complaint filed by Matthew A. Lipman from McElroy, Deutsch law firm.

Southwest Marine seeks compensatory damages amounting to $84,419.21 along with punitive damages due to what they describe as malicious actions by the defendants. They argue that it is inequitable for Bissett and her company to retain benefits derived from fraudulent activities without returning them.

The case is currently pending in court with Christian M. Capece serving as Clerk of Court. Attorney Matthew A. Lipman represents Southwest Marine while details about defense counsel remain unspecified at this time.