A former Iowa insurance producer has received a suspended prison sentence for his involvement in an insurance fraud scheme.
Oscar Sanchez of Marshalltown, Iowa, was sentenced on February 3. Sanchez pleaded guilty on December 28 to three counts of insurance fraud: fraudulent presentations and four counts of insurance fraud: fraudulent sales practices, both Class D felonies.
The ruling follows an investigation by the Iowa Insurance Division (IID) Fraud Office. The investigation, which began in September 2020, concluded that Sanchez provided false insurance documents to multiple people in Marshalltown and collected premium payments for non-existent insurance policies. Sánchez also collected illegitimate deductible cash from policyholders, which he used for his own personal benefit, according to the IID.
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For the crime of insurance fraud – fraudulent presentation, Sánchez received a sentence of five years in suspended prison and two to five years of supervised probation. He was also ordered to pay a civil penalty of $3,075.
For the crime of insurance fraud – fraudulent practices, he was sentenced to five years’ probation 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.
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