Timothy D. Sletten, Insurance Fraud, Iowa 2024
A Marshalltown man was sentenced to 21 months in prison for defrauding State Farm out of just over $180,000 in insurance claim benefits. Timothy D. Sletten, 32, pleaded guilty to crimes of insurance fraud.
In 2018, following the EF-3 tornado that hit Marshalltown, Iowa, Sletten engaged in two separate schemes to defraud State Farm. He presented false work invoices for claim benefits, totaling $180,000. Again in 2020, following the derecho disaster in Marshalltown, Sletten presented false work invoices from contractors alleging he had paid the contractors for repairs to disaster-related damage to his rental homes when in fact he had not done so.
United States Attorney Richard D. Westphal of the Southern District of Iowa announced the sentence. The Iowa Insurance Fraud Bureau and the Marshalltown Police Department investigated the case. Assistant United States Attorney Laura M. Roan prosecuted the case.
Sletten was fined $50,000 and ordered to pay full restitution. Following his prison term, Sletten will be required to serve three years of federal supervised release. There is no parole in the federal system.
The case highlights the importance of insurance companies investigating claims thoroughly to prevent fraudulent activity. State Farm's internal investigation following the 2020 derecho disaster led to the company denying payment of disaster-related claims made by Sletten.
As a result of Sletten's actions, State Farm paid out $180,000 in claim benefits that were later found to be fraudulent. The company's diligence in investigating claims ensured that no further payments were made to Sletten.
Sletten's case serves as a reminder of the consequences of committing insurance fraud. The sentence handed down in this case should serve as a warning to others who may consider engaging in similar activities.
Key Facts
- State: Iowa
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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