Former Wisconsin Insurance Executive Sentenced to 5 Years for Fraud

A former Wausau, Wis., insurance agency executive has been sentenced to five years in prison for a fraud scheme, the Associated Press reported.

The U.S. Attorney’s Office for the Western District of Wisconsin said former J.N. Manson Agency Inc. (Manson) CEO Timothy Mathwich was indicted by a grand jury in June 2012 on 24 federal criminal charges in connection with a nearly $2 million bank fraud scheme, a mail fraud scheme and a $5.6 million insurance embezzlement scheme.

The indictment alleged that Mathwich, president and chief operating officer of Manson, along with David Schofield and Susan Brockman, sold forged insurance premium financing notes to River Valley Bank in Wausau.

All but two charges against Mathwich were dismissed as part of a plea agreement, the AP reported.

According to the U.S. Attorney’s Office, the indictment alleged that Mathwich and others prepared insurance premium financing notes in the names of Manson customers who had not requested financing, forged the customers’ signatures on the notes, and then forwarded the forged notes to River Valley Bank.

The U.S. Attorney’s Office said from February 2008 to December 2008 forged notes were sold to River Valley Bank that had a face value of over $3.7 million, resulting in a loss to the bank of more than $1.9 million.

Mathwich appeared in federal court in Madison on Feb. 12, where he was also sentenced to three years of supervision following his release, the AP reported.

The case was investigated by the Wausau office of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Grant C. Johnson.

Topics USA Fraud Wisconsin