Aug. 6—A Davenport man was sentenced to three years of supervised probation after pleading guilty to his part in a healthcare insurance fraud scheme, according to a press release from the Iowa insurance division.
Jonathan Adam Schlue used various schemes related to the sale of primary and supplementary health insurance to increase his commission compensation. A Clinton woman, Michelle Roth, was also part of the schemes and has also been sentenced to three years probation. The investigation of Schlue and Roth began in 2019.
"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 in the press release. "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."
Both Schlue and Roth are required to pay a civil penalty of $750, and Schlue is also required to pay $2,250 in restitution. They were both originally charged with several insurance fraud related crimes, and both pleaded guilty to fewer charges than they were originally given.
Schlue pleaded guilty in July to one count of Insurance Fraud, one count of Conspiracy to Commit Non-forcible Felony and one count of Fraudulent Sales Practices under $10,000, all class D felonies.
Roth pleaded guilty in May to one count each of Conspiracy to Commit a Non-forcible Felony, Insurance Fraud — Application Submission, and Fraudulent Sales Practices Under $10,000, all class D felonies.
Iowans with information about insurance fraud are encouraged to contact the Iowa Insurance Division's Fraud Bureau at 515-654-6556.
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