Fraud of the Week

Life Insurance/Wire Fraud – Iowa

Amount – $100,138.87

A woman has been sentenced to two years in federal prison for wire fraud for intentionally defrauding an insurance company under materially false pretenses. She gained access to her neighbor's life insurance policy and created an online profile for the policy without her neighbor's permission. She then made herself beneficiary, and then falsely reported that the neighbor died and proceeded to process the claim. She was paid $100,138.87 even though her neighbor was alive and well. She used the funds to buy vehicles and other personal property. She has been ordered to pay restitution and serve three years of supervised release once completing her prison term.