2 Eastern Idaho Brokers Sentenced in Mail Fraud Case

A father and son who operated a Rexburg, Idaho, insurance brokerage have each been ordered to spend four months in prison and together pay $1.6 million in restitution for their role in a federal mail fraud case.

On Tuesday, U.S. District Judge B. Lynn Winmill sentenced Adrian Rand Robison, 67, of Rigby, and his son, Adrian Russell Robison, 38, of Idaho Falls.

They pleaded guilty this summer to charges that stemmed from an investigation into allegations they misled clients in the sale of life insurance policies. Adrian Rand Robison pleaded guilty to mail fraud, while his son pleaded guilty to making false tax returns.

The father founded The Legacy Network, which brokered the sale of life insurance policies between the companies that provided the policies and independent agents selling directly to clients. In return, the brokerage earned a commission paid by carriers for each policy sold.

Under a plea agreement, the father admitted encouraging wealthy clients to apply for high face-value life insurance policies with the promise of rebating all or part of the first-year premiums. He also admitted to misrepresenting in agent reports and other documents that he had no intention of rebating the entire value of the premiums.

In turn, the company got commission payments from insurance carriers valued at 105 to 138 percent of the first-year premium.

Federal investigators say from 2006 to 2009, the brokerage received more than $1.3 million in commissions, while rebating $923,000 and keeping $448,000.

The son admitted to filing false returns for tax years 2007, 2008 and 2009.

After prison, the father must serve 18 months of supervised release and eight months home detention. The son also must serve 12 months of supervised release.