A Denham Springs, La., man has pleaded guilty to participating in a plot that federal prosecutors say defrauded two life insurance companies out of hundreds of thousands of dollars.
The Advocate reports that 34-year-old Timothy Schlatre faces up to 30 years in prison following his guilty plea Friday to mail fraud and money laundering charges. His sentencing by U.S. District Judge Brian A. Jackson is set for March 27.
Prosecutors say Schlatre was an agent for New York Life and Lincoln Financial when he sold multimillion-dollar life insurance policies based on applicants’ fraudulently inflated financial statements.
A court filing says Schlatre paid those people portions of his commissions on more than $100 million in policies while they, in turn, used some of the money to make premium payments on the policies.
His money laundering conviction stems from his use of a $46,000 cashier’s check to buy a 2007 Cadillac Escalade.
Six other Livingston Parish residents already have pleaded guilty to related charges and are scheduled to be sentenced Feb. 27.
One of them – Dena Gaudet, 33, of Denham Springs – admitted she obtained $7 million in life insurance coverage by falsely listing her net worth as $500,000 and her annual income as $120,000.
U.S. Attorney Donald Cazayoux said the case remained under investigation.
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