Former Iowa Insurance Agent Sentenced in Fraud Case

Nicholas Menough, a former insurance agent in Grimes, Iowa, has been sentenced after pleading guilty to fraud and theft charges.

The Iowa Insurance Division reported that Menough pled guilty in late May to Theft in the 3rd Degree, Identity Theft, and Fraudulent Practices in the 3rd Degree, all of which are aggravated misdemeanors.

Menough received a two-year suspended prison sentence for each of these charges as well as two years of probation. Additionally, Menough was also ordered to pay a fine of $1,875.00 along with restitution.

Menough was originally charged in connection with an investigation conducted by the Iowa Insurance Division’s Fraud Bureau which began in 2017. The investigation concluded that Menough engaged in falsifying insurance policy applications and altering financial documents related to sale of insurance policy applications and altering financial documents related to the sale of insurance policies in order to receive advanced sales commissions.

Menough’s actions resulted in him receiving advance commission payments and bonuses exceeding $10,000 to which he was not entitled.

In order to facilitate his scheme, Menough, without authorization, entered his customers’ personal identifying information on insurance policy application forms and electronic funds transfer documents.

Menough forged customer signatures and submitted the documents to the insurance company in order to collect advanced sales commissions.

It was discovered that Menough attempted to conceal his scheme by paying the insurance premiums due under the fraudulent policies from his personal account.

Menough forfeited his Iowa resident insurance producer license in August of 2017. This order also barred Menough from applying for insurance licensure.

Source: Iowa Insurance Division

Topics Fraud Agencies Iowa