A former Wausau, Wis., insurance agency executive has been sentenced to five years in prison for a fraud scheme.
Former J.N. Manson Agency Inc. (Manson) CEO Timothy Mathwich had been indicted by a grand jury in June 2012 on 24 federal criminal charges in connection with a nearly $2 million bank fraud scheme, a mail fraud scheme and a $5.6 million insurance embezzlement scheme.
The indictment alleged that Mathwich, in his role as the president and chief operating officer of Manson, acted with David Schofield and Susan Brockman to sell forged insurance premium financing notes to River Valley Bank in Wausau.
All but two charges against Mathwich were dismissed as part of a plea agreement, the Associated Press reported.
According to information released by the U.S. Attorney’s Office for the Western District of Wisconsin, the indictment alleged that Mathwich and others prepared insurance premium financing notes in the names of Manson customers who had not requested financing, forged the customers’ signatures on the notes, and then forwarded the forged notes to River Valley Bank.
The U.S. Attorney’s Office said from February 2008 to December 2008, forged notes were sold to River Valley Bank that had a face value of over $3.7 million, resulting in a loss to the bank of more than $1.9 million.
Mathwich appeared in federal court in Madison on Feb. 12, where he was also sentenced to three years of supervision following his release, the AP reported.
The case was investigated by the Wausau office of the Federal Bureau of Investigation prosecution was assigned to Assistant U.S. Attorney Grant C. Johnson.
Sources: U.S. Attorney’s Office for the Western District of Wisconsin, Associated Press