Owner of Rhinelander Business Sentenced to 121 Months for Defrauding Insurance Companies

MADISON, WI—John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that John Henricks, III, 43, Amherst, Wisconsin (formerly of Rhinelander, Wisconsin), was sentenced today by U.S. District Judge Barbara B. Crabb to 121 months in prison for using the U.S. mail to defraud several insurance companies. Henricks pleaded guilty to this charge on August 14, 2014.

At sentencing, Judge Crabb found Henricks criminally responsible for using his prior business, Custom Collision, a body repair shop in Rhinelander, to defraud 19 auto insurance companies of more than $1.3 million by staging accidents and creating false work invoices. Judge Crabb directed Henricks to pay $1,306,608.72 in restitution.

Noting Henricks’ continuing, deceptive attempts to thwart the government’s efforts to identify assets to be liquidated for restitution, Judge Crabb stated that Henricks could not be trusted “to tell the time of day” and refused him the typical reduction in sentence for acceptance of responsibility.

United States Attorney Vaudreuil stated, “Henricks coerced Custom Collision employees to participate in a six-year fraudulent scheme involving 46 instances of fraud. Thanks to the exhaustive work of the Oneida County Sheriff’s Department and the FBI, Henricks will spend the next decade in custody while my office continues to pursue Henricks’ assets to repay the victims of his fraudulent scheme. This case highlights the effective results that are achieved when local and federal law enforcement work as a team.”

Henricks’ conviction was the result of an investigation conducted by the Oneida County Sheriff’s Department and Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Timothy M. O’Shea.