Insurance Fraud Violator Jailed

Steven W. Schermerhorn of Sandy, Utah, is spending 30 days in jail for insurance fraud.

In October 1999, Schermerhorn suffered water damage in his basement as a result of a hose left running in a neighbor’s yard. Schermerhorn alleged the water damaged an $18,000 computer he used in his business. He claims the computer was damaged beyond repair, and he threw the computer away before an insurance adjuster examined it.

Schermerhorn was paid $2,500 by the insurance company for the loss on his homeowners policy, but he believed he was entitled to more. Schermerhorn forged several documents to prove the existence of the computer and submitted them to the insurance company.

Further research by investigators uncovered the fact that the computer Schermerhorn claimed was damaged by water in his basement was actually repossessed approximately three years before the loss occurred.

Schermerhorn was sentenced Friday, March 29, 2002, by Utah’s Third District Court Judge Timothy Hanson, of a third degree felony, false or fraudulent insurance act. Hanson sentenced the defendant to 0-5 yrs in prison. The sentence was suspended on condition the defendant pay full restitution of $2,500 to ANPAC Insurance Company, pay a fine of $1,500 plus 85% surcharge, pay $500 to the Department of Insurance Fraud Division for the cost of investigation, and serve 30 days in jail.