Nebraska Insurance Agent Admits Fraud

One of three former Nebraska insurance agents accused of defrauding more than 250 investors out of $29 million has pleaded guilty and agreed to help prosecutors.

The Grand Island Independent reported that Kenneth Mottin, of St. Libory, pleaded guilty to mail fraud. Mottin, Stella Levea and James Masat were the principals of First Americans Insurance Service, which had been under investigation since a 2009 bankruptcy filing. They were indicted in late 2010 on 25 counts, including conspiracy, mail fraud and insurance fraud. Maximum sentences for the charges range from five to 20 years in prison.

Prosecutors say Levea and Masat, both of Grand Island, and Mottin solicited investments from private lenders who were told their money was backed by secure annuities, according to the indictment. Instead of buying annuities, prosecutors said the three used the money to support their business and personal expenses.

Levea and Masat have pleaded not guilty, and are scheduled to return to court on July 5 for a status conference.

First Americans, incorporated in 1980, had touted services to American Indian tribes in more than 20 states before it failed. It is not related to Santa Ana, Calif.-based provider of title and specialty insurance, First American Corp.