Iowa Insurance Producers Plead Guilty To Health Insurance Fraud

By Staff Reports

Insurance producers Jonathan Adam Schlue of Davenport, Iowa and Whitney Michelle Roth of Clinton, Iowa, were recently sentenced in Scott County District Court after pleading guilty to their parts in a healthcare insurance fraud scheme.

The sentences follow an investigation by the Iowa Insurance Fraud Bureau which began in 2019. The investigation concluded Schlue and Roth deployed various schemes related to the sale of primary and supplemental health insurance. These schemes resulted in increased compensation through commissions the agents were not entitled to.

“Supplemental health insurance policies can be a great product for consumers to fit their needs but they shouldn’t be added on without the consumer’s knowledge,” Iowa Insurance Division spokesman Chance McElhaney said. “It’s important for consumers to understand what they are purchasing and if Iowans have questions or concerns about products being sold by an insurance agent they can contact the Iowa Insurance Division for assistance.”

In March of 2018, the Iowa Insurance Division issued an order revoking Roth’s insurance producer’s license and ordered her to pay a $500 civil penalty.

In May of 2019, Roth was charged with Fraudulent Submission (Class D Felony), Fraudulent Sales Practices (Class D Felony), Conspiracy to Commit a Non-forcible Felony (Class D Felony), and two counts of Insurance Fraud - Application Submission (Class D Felony).

In May of 2021, Roth pled guilty to one count each of Conspiracy to Commit a Non-forcible Felony, Insurance Fraud - Application Submission, and Fraudulent Sales Practices Under $10,000. Following her guilty plea, Roth received a deferred judgement, was ordered to serve three years of probation, and received a civil penalty of $750.

In May of 2019, Schlue was charged with four counts of Fraudulent Submission (Class D Felony), four count of Fraudulent Sales Practices (Class D Felony), two counts of Conspiracy to Commit Non-forcible Felony (Class D Felony), Theft Second Degree (Class D Felony) and Ongoing Criminal Conduct (Class B Felony). In March of 2020, an additional charge of Fraudulent Sales Practices Under $10,000 (Class C Felony) was filed. Additionally, in March of 2020, the Iowa Insurance Division issued an order revoking Schlue’s insurance producer’s license and permanently prohibiting him from applying for future licensure in the state.

In July of 2021, Schlue pled guilty to one count of Insurance Fraud (Class D Felony), one count of Conspiracy to Commit Non-forcible Felony, (Class D Felony) and one count of Fraudulent Sales Practices under $10,000, (Class D Felony). Schlue received a deferred judgement, was placed on three years of supervised probation, received a civil penalty of $750, and was ordered to pay restitution in the amount of of $2,250.