Sanchez

A former insurance producer from Marshalltown was recently sentenced to a pair of five-year suspended prison sentences after pleading guilty to multiple counts of insurance fraud in December following an investigation by the Iowa Insurance Division Fraud Bureau.

An inquiry into the actions of Oscar Sanchez, who pleaded guilty on Dec. 8, began in September of 2020. According to a press release, the investigation concluded that Sanchez provided fictitious insurance documents to multiple individuals in Marshalltown and collected premium payments for insurance policies that did not exist. Following the derecho, Sanchez collected illegitimate cash deductibles from insureds, which he used for his own personal gain.

Sanchez was arrested on July 26, 2021 and released after posting bond, and on Dec. 8, 2022, he pled guilty to three counts of Insurance Fraud — fraudulent submissions and four counts of insurance fraud — fraudulent sales practices (each a Class D felony). On Feb. 3, Sanchez received a five-year suspended prison sentence, two to five years supervised probation and a $3,075 civil penalty for the fraudulent submissions charges.

Sanchez also received a separate five-year suspended prison sentence, two to five years supervised probation, a $4,100 civil penalty and $38,070 in restitution for the fraudulent sales practices offenses.

Lt. Tricia Thein of the Marshalltown Police Department said another individual in the insurance industry caught wind of Sanchez’s scam, felt it didn’t seem right and encouraged victims to contact law enforcement.

“Those victims were just distraught when they found out. You think of how you operate with your insurance carriers. You have an established trust, and you’d like to believe that should something happen, you’re covered. That’s what you pay your money for,” Thein said. “We hate to see people being victimized, but then you add insult to injury when you victimize after we have some seriously bad (weather) issues… People are already down on their luck. They’re already trying to keep it together at the seams if you will, and then you have somebody come in and totally exploit them.”

Thein added that the victims — she estimated there were at least eight — were members of all ethnic and socioeconomic groups, and Sanchez, who had worked in the industry for about 10 years, simply looked for individuals who may not have had a clear understanding of how the insurance system works. She stressed the importance of “slowing the process down,” thinking and asking questions before handing over money, especially if a potential scammer attempts to press someone into an immediate payment.

“If it’s that good of a deal and if it’s that good of a business and they want your business, they’re gonna honor those things and respect the fact that you want to vet it out,” Thein said. “Everybody works hard for their money, but make sure you know where it’s going.”

Iowans with information about insurance fraud are encouraged to contact the Iowa Insurance Division’s Fraud Bureau at 515-654-6556.