Son of Met-Con founder gets community service, restitution for insurance fraud conviction
Faribault Daily News (MN)
The son of the late founder of Met-Con pleaded guilty last week to insurance fraud.But the charge will be dismissed and Scott Michael McDonough, 53, of Faribault, won't serve any jail time if he pays restitution, does community service and complies with other probation requirements.
McDonough entered an Alford plea, meaning he did not admit guilt but acknowledged he likely would have been convicted if the case went to trial.
McDonough was charged with felony counts of insurance fraud and theft by swindle in June 2021 in Rice County District Court. The charges claimed McDonough forged a signature and illegally cashed out a life insurance property owned by Faribault-based Met-Con.
Father Tom McDonough took out a $500,000 life insurance policy on Scott McDonough in 2003, and MetCon made monthly payments, the charges said. Scott McDonough worked for the company at one time, but was ousted from the company in 2019, shortly after his father's death.
When Scott McDonough received a bill for the over $7,000 annual premium, he reportedly forged a name to transfer ownership of the policy to himself. He then collected a nearly $125,000 payout on the policy.
Scott McDonough told an investigator with the Minnesota Commerce Fraud Bureau he believed he owned the policy. He said his father had told him he could cash out the insurance policy someday.
McDonough initially pleaded guilty to the fraud charge in May, withdrew the plea in July, then pleaded guilty again last week.
He was sentenced by Judge Karie Anderson to complete 40 hours community service and two years of probation. He also must pay restitution, the amount of which is still being determined.
Probation conditions include he continue attending therapy and he stay away from MetCon and its new owners. Jail time will be waived if McDonough is completing those terms.