Former Idaho agent, husband sentenced in auto insurance fraud scheme

Advertisement

A former Idaho Falls, Idaho, insurance agent and her husband were recently sentenced on fraud charges for a scheme to fraudulently claim their car was stolen to collect insurance funds.

Benjamin A. Gunn, 41, and his wife, Melody J. Gunn, both pleaded guilty in December 2009 to conspiracy to commit insurance fraud, according to the Idaho Attorney General’s Office.

Benjamin Gunn was sentenced Feb. 1 to 10 years in prison with one year served, but the court suspended the prison term, ordering him to pay a $5,000 fine, serve eight years of probation and perform 100 hours of community service instead. Melody Gunn must pay a $1,000 fine, serve six years of probation and also perform 100 hours of community service.

Melody Gunn was a licensed insurance agent with Alpine Insurance of Idaho Falls at the time of the fraud scheme. Her license to conduct business in the state was revoked by insurance regulators and the judge ordered that she cannot seek future employment in the insurance industry.

As part of the scheme, Melody Gunn over-insured the couple’s 1968 Chevrolet Camaro in the amount of $22,500 through her employer.

According to the attorney general’s office, an informant contacted the Idaho State Police with information that the Gunns intended to hire someone to dispose of the car, claim that it was stolen and collect money from their auto insurance policy.

After meeting with an Idaho State Police detective, the informant told Benjamin Gunn that he had a friend who would take care of disposing of the car and gave Gunn the number of an undercover detective in July 2009.

Following several phone calls with the undercover detective, the Gunns met him in a parking lot of an Ammon, Idaho, restaurant on Aug. 11, 2009, giving the detective $100 and leaving another $100 in the center console of the Camaro. Benjamin Gunn told the detective that he did not wish to see the car again and allowed the detective to leave with the car, according to officials.

The Gunns had offered to sell the car previously for $15,000, the attorney general’s office said, and after the detective took the vehicle, the couple filed a stolen vehicle report with local law enforcement and then filed a claim with Alpine Insurance, stating the vehicle’s value as $25,000.

Follow IFAwebnews: 
Important links and updates throughout the day via Twitter Join IFAwebnews’ Insurance News group on LinkedIn.com Become a fan of IFAwebnewss Insurance News on Facebook Feeds for all the ourinsurance news or just the lines you need. Insurance news delivered to your inbox
© 2009 New Horizon Group, Inc. :: Insurance & Financial Advisor | IFAwebnews.com :: NS 56 queries. 0.920 seconds.
Entries RSS Comments RSS