Texas Man Sentenced to Prison for Insurance Scam

A Texas man has been ordered to serve more than seven years in prison and repay nearly $583,000 after pleading guilty to a fraud scheme.

A federal judge sentenced 33-year-old Timothy Fry of Amarillo, who admitted to money laundering in what prosecutors say was an insurance scam in which annuities were sold to mainly elderly investors.

Fry’s mother, 60-year-old Janice Edwina Demmitt, was convicted in August of conspiracy to commit money laundering, eight counts of wire fraud and 11 counts of money laundering. No sentencing date has been set for Demmitt.

According to Texas Department of Insurance records, Demmitt held a general lines agent license for life, accident, heath and HMO insurance. A search of TDI’s database found no active license for Timothy Fry.

Investigators say the mother and son, as registered agents of Allianz Life Insurance Co. of North America, used the investment funds for their personal expenses.