On July 25th., 2012, the U.S. Attorney’s Office in Baton Rouge, La., charged Timothy R. Schlatre with mail fraud, money laundering and asset forfeiture for his alleged role in a life insurance scam.
Schlarte was an agent for New York Life Insurance Co. and Lincoln National Corp. He allegedly made hundreds of thousands of dollars in commissions by selling insurance policies based on phony representations and defrauded the insurance company by allegedly writing policies over $100 million.
According to the U.S. Attorney, Schlatre conspired with six other individuals to apply for life insurance coverage. The agent allegedly instructed the applicants to lie about their net worth and monthly income, which they then could receive greater amounts of coverage.
Schlatre allegedly provided the applicants with money to pay the premium costs —which is barred by the life insurers and by state law. The agent allegedly deposited the money into the applicants’ accounts so that they appeared to be making the payments.
Schlarte is now facing a maximum of 30 years in prison, and fines of up to $500,000 or twice the gross gain or loss from the offense whichever is larger.
If you or a family member have become alleged victims of life insurance fraud, contact an insurance fraud attorney for a free consultation on how to recover your investment losses. To speak with an attorney, call 888-760-6552, or visit securitieslawyer.com. Lars K. Soreide will stand up and fight for the rights of consumers.
Soreide Law Group, PLLC, representing Insurance Fraud Victims in Federal Court, State Court and before the Financial Industry Regulatory Authority (“FINRA”).