Idaho Department of Insurance: Former agent convicted of felony fraud

The Idaho Department of Insurance announced that Stetzen Bailey, of Heyburn, Idaho, pled guilty on February 23, 2026, to one felony count of insurance fraud. Bailey is a former Farm Bureau insurance agent.

The DOI Fraud Unit’s investigation found that Bailey knowingly backdated an insurance policy on a 2018 Bombardier snowmobile belonging to a family member. At the time Bailey created the policy, the snowmobile had already been damaged in a collision. As a result of the fraudulent backdating, Farm Bureau Insurance paid out more than $7,000 before the fraud was uncovered. Investigators with the Department confirmed the damage occurred prior to the false effective date of the policy.

“Insurance agents hold positions of significant trust, and any agent who abuses that trust will be held fully accountable,” said Dean L. Cameron, Director of the Idaho Department of Insurance. “Fraud committed by industry professionals is especially serious because they know better. We will continue to take firm action against anyone who attempts to manipulate the system for personal gain.”

On May 11, 2026, Bailey was sentenced in Cassia County District Court to:

• A unified sentence of 5 years, consisting of 2 years fixed plus three years indeterminate.
• A suspended sentence in favor of 3 years of supervised probation.
• Completion of 10 days on the sheriff’s work detail.
• Completion of 40 hours of community service.
• Payment of fines and restitution.