Minn. Man Accused of Swindling Neighbors Out of $700K
A southern Minnesota man has been accused of swindling his neighbors out of more than $700,000 and counting.
The criminal complaint alleges that for 21/2 years, Dale Eugene Schlichting, 48, accepted checks or money orders for his business DSI Agency in Hayfield.
The complaint said Schlichting would tell clients he was investing the money or opening an insurance policy, but the money instead would go into a bank account under his name, and no policies were created or investments made.
He lost his insurance license in October 2003, according to the criminal complaint.
“Our investigation has revealed that he was selling insurance and unregistered securities to senior citizens and promising a high rate of return. It appeared to be a Ponzi scheme,” said Patrick Sexton, a spokesman for the Minnesota Department of Commerce’s Fraud Investigation Unit.
Officials suspect that some victims might have lost tens of thousands of dollars through the scam, Sexton said.
Schlichting was arrested in Brownsdale while authorities took paperwork, files and computers from his business in Hayfield.
He’s charged with theft by swindle and two counts of insurance fraud. The Dodge County Attorney’s office says the case will probably be turned over to federal authorities because of the amount of money involved.
- EPA Designates PFAS Chemicals as Superfund Hazardous Substances
- EVs Head for Junkyard as Mechanic Shortage Inflates Repair Costs
- California Chiropractor Sentenced to 54 Years for $150M Workers’ Comp Scheme
- California Sees Two More Property Insurers Withdraw From Market
- CoreLogic Report Probes Evolving Severe Convective Storm Risk Landscape
- Mother of 8-Year-Old ‘Violently Sucked’ into Houston Hotel Pool Files Wrongful Death Suit
- Millions of Recalled Hyundai and Kia Vehicles, With Dangerous Defect, Remain on Road
- Poll: Consumers OK with AI in P/C Insurance, but Not So Much for Claims and Underwriting