Insurance agent sentenced for $100 million fraud - WLOX.com - The News for South Mississippi

Insurance agent sentenced for $100 million fraud

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DENHAM SPRINGS, LA (WAFB) -

A Denham Springs man was sentenced to almost five years in prison for masterminding an insurance fraud scheme.

Timothy R. Schlatre, 35, sold life insurance policies for New York Life and Lincoln Financial.  He would recruit people and convince them to submit false information about their net worth and income to sell large policies so he could receive large commissions.  

Because of the size of the policies, the individuals couldn't afford the premium payments.  Schlatre would agree to provide the premium payments for them, which is banned by both companies and state law.

The insurance policies were worth more than $100 million, giving him $1.5 million in commissions to which he was not entitled.

Schlatre pled guilty to charges of mail fraud and money laundering.

Six others have been convicted of conspiracy to commit mail fraud in connection with the scheme:

Jason Paul Austin, 32, of Walker.
Jodi Marie Austin, 34, of Walker.
Rickey J. Austin, 49 of Denham Springs.
Jimmy O. Cassels, 33, of Denham Springs.
Todd D. Cummings, 34, of Walker.
Dena A Gaudet, 33, of Denham Springs.

Schlatre was also ordered to forfeit the proceeds of his crimes, including $1,424,931.12 and a Cadillac Escalade.

Copyright 2013 WAFB. All rights reserved.

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