Sacramento Case Settled

May 23, 2001

A Sacramento man has been sentenced for his alleged role in a nationwide insurance fraud plan intended to defraud investors and the insurance industry. The 15-month joint investigation known as “Operation Cleansheet,” was undertaken by the California Department of Insurance’s Fraud Division and Investigations Bureau, the FBI, the U.S. Attorney’s Office and the Sacramento District Attorney’s Office.

The defendant, Lonnie Lee Hartwell, was indicted last May and was charged along with his wife, Penni Alexander-Harwell, on felony charges pinpointing them as the masterminds of a clean-sheeting scam that led insurance companies to write more than $11.6 million in policies to individuals with terminal illnesses.

Lonnie Lee Harwell was sentenced last week to 40 months, while his wife’s sentencing was pushed ahead for another six weeks.

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