4/26/2011 7:30:00 AM Former Manson executives await June sentencing
By Heather Schaefer Associate Editor
Two former Manson Insurance executives are scheduled to be sentenced in June for their participation in a $9 million bank fraud scam.
According to online federal court records, former Manson Insurance Chief Executive Officer David R. Scholfield, 84, entered a guilty plea April 13 to one count of conspiracy to commit bank fraud.
The plea was entered in the United States District Court for the Western District of Wisconsin located in Madison.
According to a press release issued by John Vaudreuil, United States Attorney for the Western District of Wisconsin, Scholfield admitted during the plea hearing that he submitted forged insurance premium financing notes to River Valley Bank of Wausau.
In addition, Scholfield agreed as part of a plea agreement that the court could consider the embezzlement of credits due Manson Insurance Agency customers and the providing of fraudulent loan notes to Acqua Finance of Wausau as part of the criminal pattern of conduct.
The criminal conduct Scholfield admitted to dates back to February and December 2008, according to court records.
Former Manson vice-president Susan M. Brockman, 60, has also entered into a plea deal with the United States Attorney's Office. According to online federal court records, Brockman entered a guilty plea March 23 to one count of misprision of a felony (concealing a felony).
Court records indicate Brockman is accused of having knowledge of a felony and concealing the same by causing entries to be made in Manson Insurance records and failing to make the illegal activity known to the proper authorities.
As part of a motion related to victim notification procedures, the United States Attorney's office has stated there are approximately 800 victims of the Manson scam with a total loss of approximately $9,686,138.00.
A number of Northwoods businesses were listed in an affidavit as possible victims of the scam including Wausau Paper, Aspirus Inc., the Lac du Flambeau Chippewa and The Lakeland Times (Lakeland Printing).
Federal authorities began investigating Manson Insurance last summer.
An FBI press release states the agency was issued a federal search warrant last June to search the Manson Insurance offices in Wausau as part of its investigation into potential violations of federal law including insurance embezzlement, mail fraud and bank fraud.
The company has been under new ownership for the past two years.
River Valley Bank, which has branches in Minocqua, Tomahawk and Eagle River, purchased Manson Insurance in April 2009. Since the acquisition, River Valley has brought in new leadership for the business which is now known as River Valley Insurance, and new processes have been established to make sure it operates according to insurance laws, regulations and procedures, a bank spokesperson told the Lakeland Times in June.
Scholfield is scheduled to be sentenced June 14. He faces a maximum penalty of five years in prison, three years supervised release and a $250,000 fine.
Brockman will be sentenced June 22. She faces a maximum of penalty of three years in prison, one year supervised release and a $250,000 fine.
Scholfield and Brockman, who are the only former Manson officials charged in connection with the scam to date, are free until sentencing.
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