Denham Springs man pleads guilty in insurance scam - FOX 8 WVUE New Orleans News, Weather, Sports

Denham Springs man pleads guilty in insurance scam

Updated:

BATON ROUGE, La. (AP) - A Denham Springs 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.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Powered by WorldNow

Fox 8 WVUE-TV
Louisiana Media Company, LLC.
1025 S. Jefferson Davis Parkway
New Orleans, LA 70125

General Number: (504) 486-6161
News Tips: (504) 483-1503
News Room Fax: (504) 483-1543

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WVUE. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.