Bismarck man convicted of insurance fraud involving dead wife sentenced to prison

A Bismarck man was sentenced to two years in prison Wednesday after being convicted of insurance fraud in a case involving his dead wife.

John Unruh was convicted of committing a fraudulent insurance act with an attempt over $50,000 that carries a maximum sentence of 10 years in prison at a one-day trial held May 12. A previously set unsecured bond of $500 was revoked and Unruh was ordered held while a presentence investigation was conducted.

The report that resulted from the investigation was described by both a prosecutor and a judge as very comprehensive and recommended Unruh receive mental health services while incarcerated. Those services were ordered by South Central District Judge James Hill.

"The mental health component of this case is very significant," the judge said.

The report indicated that Unruh suffered or suffers from depressive behaviors brought on by the stressor of his wife's unexpected death but also previously exhibited what was described as chronic aggressive behaviors that led to a criminal history including instances of violence, according to Hill.

Background of events

Unruh, 42, reportedly took out a $225,000 life insurance policy through Mutual of Omaha on his wife, Jade, in April 2025, about two months after she had died of influenza and pneumonia on Feb. 10, according to prosecutors. An autopsy was conducted on Jade Unruh before she was buried and John Unruh tried to collect on the policy about a week after the policy was written, according to an affidavit.

When the insurance company notified Unruh that his premium was being refunded because his wife had died before the policy took effect, Unruh maintained he should receive $100,000 through a clause that guaranteed the payment since the policy had been written.

Unruh claimed that he had told the insurance agent who wrote the policy that his wife was already deceased, but the agent disputed that, according to the affidavit.

A state insurance fraud investigator said Unruh acted as his dead wife in taking out the policy and signing her names on documents, and attempted to get a payout for a policy he obtained under false information.

Conflicting statements

In her sentencing recommendation, which was adopted, Assistant Burleigh County State's Attorney Britta Joyce noted that Uhruh has admitted signing documents related to the insurance policy, but recanted that statement during his own testimony at trial.

Hill also noted the inconsistency regarding Unruh's statements during his testimony versus evidence presented by the prosecution and told Unruh, "I don't believe you told the truth."

"You were found guilty beyond a reasonable doubt by a jury," Hill said. "The verdict came back pretty fast."

Joyce also noted the need for mental health and chemical dependency services, saying that while Unruh may have told the PSI writer he wasn't interested in mental health services and he didn't use drugs, interviews with his own family members showed a pattern of conduct indicating those services are needed.

Defense attorney Thomas Glass had recommended a time served sentence and three years of supervised probation, telling Hill that mental health and chemical dependency services could effectively be accessed outside the penitentiary and included in conditions of probation.

"He needs grief counseling," Glass said. "He's been remorseful with me. He recognizes his behavior."

Hill said a time served sentence followed by supervised probation was an inappropriate resolution based on the jury's verdict and information contained within the PSI.

"There has to be a punitive nature," Hill said.

Unruh will receive credit for slightly more than three months spent in custody since being found guilty. Hill also ordered Unruh to undergo mental health and chemical dependency evaluations and to complete any recommended treatments while incarcerated.

Unruh was also ordered to serve three years of supervised probation that will not begin until he's released from prison.

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