Iowa Insurance Agent Pleads Guilty to Crafting Bogus Policies

March 6, 2014

An insurance agent in northeast Iowa accused of creating fake life insurance policies to make more money has pleaded guilty to mail fraud.

U.S. Attorney Kevin W. Techau says in a press release that 46-year-old Melissa Williams, of Dike, is scheduled to be arraigned soon in U.S. District Court in Cedar Rapids for one count of mail fraud.

Williams admitted as part of a plea agreement that she used the names of real people on bogus life insurance applications between July 2011 and January 2012. She says she secretly paid the initial premiums on the policies and collected more than $170,000 in advance commission from two insurance companies.

Williams remains free on bond pending her sentencing. She faces up to 20 years in prison.