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Beth Galloway, Mail Fraud, Money Laundering, Iowa 2013

Crime Boss: Beth Galloway

A 42-year-old Iowa woman who participated in a scheme to submit a fraudulent insurance claim after her boyfriend intentionally set fire to his vacant house has been convicted by a jury of mail fraud, using fire to commit mail fraud, and money laundering.

Beth Galloway, of Camanche, Iowa, and formerly of Olin, was convicted of one count of mail fraud, one count of using fire to commit mail fraud, and one count of conspiracy to commit money laundering after a three-day trial in federal court in Cedar Rapids.

The evidence at trial showed that Galloway and her boyfriend, James Plower, made up and participated in a scheme to defraud Plower’s insurance company between Spring 2013 and Spring 2014. Galloway drove a minor to Plower’s vacant home in Martelle, Iowa, to attempt to set fire to the home, but both attempts failed. Plower then deliberately set fire to his vacant home and submitted an insurance claim in which he falsely claimed the fire was accidental.

As a result of the fraudulent insurance claim, the insurance company mailed Plower a check for $66,497.46. Evidence showed that Galloway and Plower agreed to launder the proceeds from the fraudulent insurance claim in February and March of 2014 when they took $10,000 of the proceeds from Plower’s bank account and gave it to a friend to hold for them.

Plower had previously pled guilty to charges of mail fraud and use of fire to commit mail fraud and was sentenced to 13 years in federal prison. Galloway faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of 50 years’ imprisonment, a $750,000 fine, $300 in special assessments, and nine years of supervised release following any imprisonment.

Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Galloway remains free on conditions of release pending sentencing.

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