Wausau Man Pleads Guilty to Bank Fraud and Misappropriation of Insurance Credits
|U.S. Attorney’s Office November 29, 2012|
MADISON, WI—John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Timothy I. Mathwich, 62, of Wausau, Wisconsin, pleaded guilty on November 27, 2012, in U.S. District Court in Madison to conspiracy to commit bank fraud and misappropriation of insurance credits.
U.S. District Judge William M. Conley scheduled sentencing for February 14, 2013, at 1:00 p.m. Mathwich faces a maximum penalty of five years in federal prison, a $250,000 fine, a three-year period of supervised release, a $100 special assessment, and the entry of an appropriate restitution order on each count.
At the plea hearing, Mathwich acknowledged being involved in a conspiracy with David R. Scholfield and Susan M. Brockman. Mathwich, Scholfield, and Brockman were all officers of J.N. Manson Agency Inc., a/k/a Manson Insurance of Wausau. At the plea hearing, Mathwich acknowledged that the conspiracy resulted in Manson Insurance fraudulently obtaining $4.7 million in loans from River Valley Bank, Wausau. Mathwich also acknowledged that the conspiracy to misappropriate customer’s insurance credits resulted in a loss to Manson Insurance customers of approximately $5.6 million.
Former Manson Insurance CEO David Scholfield of Wausau was sentenced in October 2011 to five years in prison. Former company Vice President of Operations Susan Brockman was sentenced in December 2011 to six months in prison. In addition to the prison sentences, both Scholfield and Brockman were ordered to pay $5.2 million in restitution to customers of Manson Insurance.
The charges against Timothy I. Mathwich were the result of an investigation conducted by the Wausau Resident Agency of the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorneys Grant C. Johnson and Stephen P. Sinnott.