A former Iowa insurance producer has received a suspended prison sentence for his participation in an insurance fraud scheme.
Oscar Sanchez of Marshalltown, Iowa, was sentenced on Feb. 3. Sanchez pleaded guilty on Dec. 28 to three counts of insurance fraud – fraudulent submissions and four counts of insurance fraud – fraudulent sales practices, both Class D felonies.
The sentence follows an investigation by the Iowa Insurance Division’s (IID) Fraud Bureau. The investigation, which began in September of 2020, concluded that Sanchez provided phony insurance documents to multiple people in Marshalltown and collected premium payments for insurance policies that didn’t exist. Sanchez also collected illegitimate cash deductible from insureds, which he used for his own personal gain, according to the IID.
For the crime of insurance fraud – fraudulent submission, Sanchez received a five-year suspended prison sentence and two to five years supervised probation. He was also ordered to pay a civil penalty of $3,075.
For the crime of insurance fraud – fraudulent practices, he was given a five-year suspended sentence and two to five years of supervised probation. He was also ordered to pay a civil penalty of $4,100 and restitution of $38,070.
Have something to say about this story? Let us know in the comments below.
