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Life insurance scheme results in charges for alleged perpetrators

Posted On Tue, July 31, 2012

Seven people in Louisiana were recently charged with engaging in life insurance fraud, with possible prison time and or fines if they are found guilty.

In a release, U.S. Attorney for the Middle District of Louisiana Donald J. Cazayuox, Jr. said that his office was charging Timothy R. Schlatre, 34, with mail fraud, money laundering and asset forfeiture. He is accused of being of ring leader of a scheme to defraud insurance firms out of money by handing out policies based false information. The government prosecutor said that based on his position as an agent for both Lincoln Financial and New York Life he was able to illegally collect commissions on fraudulent policies.

"This investigation should be a clear reminder that federal law enforcement's reach into white collar crime extends beyond traditional health care, investment and corporate fraud to bring those responsible to justice," stated FBI Special Agent-in-Charge Michael J. Anderson.

Schlatre faces up to 30 years in prison and fines of as much as $500,000 if convicted of the fraud. In addition, accomplices Jason Paul Austin, Jodi Marie Austin, Ricky Austin, Jimmy Cassels, Todd Cummings and Dena Gaudet, each face up to 5 years behind bars and or a quarter million dollar fine.

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