Fraud Roundup
A former Sioux Falls, S.D. insurance agent convicted of embezzling money from two clients in nursing homes has been sent to prison for 20 years.
Paul Wentzlaff, 46, pleaded guilty in September to embezzlement and insurance fraud involving $160,000.
He said the two Colton-area men loaned him money for a business venture and gave him permission to use some of it on living expenses.
But Wentzlaff acknowledged he broke the law because he was serving as their insurance agent and financial adviser when he took advantage of them.
One of the men lost $486,000 and the other lost $104,000.
“They’re the perfect victim. These are elderly gentlemen, with no families to speak of, in nursing homes. And they’re wealthy,” said Prosecutor Don Srstka. “They’re the perfect victim for a person like this to prey upon.”
Wentzlaff used $5,200 of the money to buy a watch, and he made several payments, totaling $58,000, to a psychic.
Wentzlaff’s attorney Clint Sargent said Wentzlaff wants to serve his sentence and get back to work so he can pay the victims.
Information from: Argus Leader, www.argusleader.com.
A judge ordered a Duluth, Minn., man to pay the city’s $100,000 insurance deductible for setting a fire that caused $384,058 in damage to a community center in the city.
Tylor Ray Olson, 20, pleaded guilty in October to third-degree arson for starting the July 13 fire at the Harrison Community Center. Olson said he started the fire in a coal chute to keep warm and claimed he didn’t intend to start the building on fire.
Sixth Judicial District Judge Shaun Floerke sentenced Olson in October to three years of supervised probation, 100 hours of community service, $210 in court costs and to undergo a psychological evaluation.
Floerke also ruled that Olson was directly responsible for the city’s out-of-pocket cost, the $100,000 deductible, to repair the community center.
According to a memorandum accompanying the court order, Olson has no income, owes $15,000 for his own medical bills, isn’t working and is essentially homeless. Olson has applications pending for Supplemental Security Income and medical assistance.
But Floerke said that doesn’t excuse him from paying back the city.
“Mr. Olson may bring a motion to adjust his repayment schedule in the event he is asked to pay more than he is able,” the judge wrote.
Arrowhead Regional Corrections will review Olson’s financial status while he is on probation to set up a payment schedule based on his ability to pay. When his probation is completed, any unpaid restitution can be sought through civil means.
AP.
The Michigan Office of Financial and Insurance Services (OFIS) has issued a “cease and desist” order against a Flint insurance agent for selling bogus Michigan no-fault auto insurance certificates.
Chris Densmore, owner of Densmore Insurance Agency, has been illegally issuing the fake no-fault certificates through a non-existent insurance company called Densmore Insurance Group, the OFIS said.
OFIS said it has learned of at least eight individuals who purchased the bogus certificates between June 12, 2007, and November 18, 2007, but it is likely there are more drivers who are unaware they have purchased illegal certificates. OFIS is working with the Thetford Township Police Department regarding these illegal sales of bogus certificates.
“Any driver who bought a certificate naming Densmore Insurance Group as the authorized Michigan insurer after October 1, 2007, should get proper auto coverage through a reputable insurance agent immediately,” OFIS Acting Commissioner Ken Ross said. “Anyone who purchased insurance naming Densmore Insurance Group as the authorized Michigan insurer prior to October 1, 2007, should verify that they have coverage through an authorized insurer. The bogus insurance coverage sold to consumers by Densmore isn’t worth the paper it’s printed on and will provide zero protection in case of an accident.”
Chris Densmore was licensed as an authorized insurance agent through OFIS. However, in early October, Densmore lost his authority to sell property and casualty insurance from all of his providers and has not been able to place automobile insurance through any authorized companies in Michigan.
OFIS has notified Secretary of State officials of the illegal sales of no-fault certificates by Densmore.
OFIS’ Web site (www.michigan.gov/ofis) includes lists that can be checked to verify if insurance companies, agencies and agents are licensed.
Source: Michigan Office of Financial and Insurance Services
A Kent County, Mich., woman has pleaded no contest to setting her home on fire with her husband and teenage children inside to collect insurance money.
Prosecutors say 38-year-old Sheryl Christman of Grand Rapids Township was facing foreclosure, wanted to get out of the $150,000 home’s mortgage and wanted to be with her new boyfriend.
The Grand Rapids Press reports mattresses were set on fire in the garage on September 1. Investigators say Christman wept outside as the home burned.
Her family escaped without injury.
A no contest plea is not an admission of guilt, but is treated as such at sentencing. Christman faces up to 20 years in prison, but could get less than two because she had no previous criminal record. Sentencing is expected within six weeks.
AP.
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