Idaho Resident Sentenced for Insurance Fraud

November 22, 2006

A Pocatello, Idaho, man received a one to seven year prison sentence for insurance fraud, Attorney General Lawrence Wasden said. Joshua K. Smith, 26, pleaded guilty to one count of insurance fraud and was sentenced in Sixth District Court in Pocatello. Sixth District Judge Peter McDermott also ordered Smith to pay $6,900 in restitution. The court suspended the prison sentence and ordered Smith to serve 60 days in the Bannock County Jail and seven years on probation.

In Jan. 2003, Smith purchased a CR 125 Honda motorcycle. A few weeks later, he attempted to sell the motorcycle without success. He then hid the motorcycle in a relative’s storage shed, called the police and reported the motorcycle stolen. Smith then filed an insurance claim that was paid by State Farm Insurance.

In Aug. 2005, Smith sold the motorcycle to a co-worker for $1,200. Bingham County authorities discovered the motorcycle at the buyer’s residence after receiving an anonymous tip. The co-worker stated that he had purchased the motorcycle from Smith.The restitution order requires Smith to pay $5,700 to State Farm Insurance to reimburse the company for the payment made as a result of the fraudulent claim and $1,200 to reimburse Bingham County for the cost of storing the motorcycle.

Charles Hudson of the Idaho Department of Insurance investigated the case, which was prosecuted by Deputy Attorney General Ken Robins of the Attorney General’s Special Prosecutions Unit.

Source: AG Office

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