Blackfoot man sentenced to probation for committing insurance fraud

BLACKFOOT — A Blackfoot insurance provider was recently sentenced to serve two years of felony probation after admitting to committing fraud, according to a recent news release from the Idaho Department of Insurance.

Scott Packham, of Blackfoot, received the sentence after having pleaded guilty to one felony count of diverting fiduciary insurance funds in October 2023 pursuant to a pela agreement with Bingham County prosecutors.

Court records show that Packham was initially charged with 11 counts of diverting fiduciary insurance funds in December 2022 stemming from incidents that occurred between January 2018 and June 2019.

All but one of the diverting fiduciary insurance funds were eventually dismissed, court records show.

Packham was sentenced by 7th District Judge Stevan H. Thompson on Feb. 7.

“Two of the victims attended the sentencing, one of whom gave an impact statement,” the Idaho Department of Insurance said in the news release. “The individual explained that they suffered a broken pipe and water damage in their home during the time when their insurance policy was terminated, due to Packham keeping the premium money. Fortunately, the insurance company reinstated the policy and honored the claim after the customer was able to prove they had paid the premium to Packham’s agency.”

Thompson sentenced Packham to three years prison, of which one of those years are mandatory, though he suspended the prison sentence and instead placed Packham on two years of supervised probation.

Packham must serve 100 hours of community service, and pay fines and restitution to the Department of Insurance, individual victims and insurance companies.

The Department of Insurance revoked Packham’s insurance license in November 2020.