Fraud of the Week

Homeowners fraud – Iowa

Amount – $10,000+

A fraudster cheated a homeowner out of $10,000 by promising to make repairs to the dwelling after a derecho caused damage to the area. The man promised to fix the damage to the homeowner's dwelling, and the homeowner gave him an advance of the proceeds from the insurance policy. The man bought some materials for the repairs, but he returned them and used the cash for gambling and personal items. He also convinced the homeowners to loan him an additional $1,000 for food and lodging. The man later towed the homeowner's vehicle from the premises to a junkyard without obtaining the homeowner's permission or buying the vehicle from the homeowner. The fraudster has pled guilty to one count of mail fraud and faces 20 years in prison, a $250,000 fine, and three years of supervised release.