Ex-Manson Insurance exec heading to prison - WAOW - Newsline 9, Wausau News, Weather, Sports

Ex-Manson Insurance exec heading to prison

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MADISON (WAOW) - The former president of Manson Insurance in Wausau was sentenced Tuesday to five years in prison for his role in an elaborate bank and insurance fraud scheme.

Timothy Mathwich was convicted of conspiracy to commit bank fraud and conspiracy to misappropriate insurance credits in a plea bargain with federal prosecutors. He originally was charged with 24 counts.

U.S. District Judge William M. Conley sentenced Mathwich to five years in prison on each conviction and ordered that the sentences be served at the same time, Assistant U.S. Attorney Grant Johnson said.

In June 2010, the FBI raided Manson Insurance's offices.

According to prosecutors, Mathwich wrongly obtained nearly $5 million in loans from River Valley Bank to finance insurance premiums and misappropriated customer's insurance credits or refunds that cost Manson Insurance nearly $6 million.

Mathwich is the third ex-Manson Insurance executive sentenced in the scheme. Chief executive officer David Schofield of Wausau was sentenced to five years in prison and vice president of operations Susan Brockman was sentenced to six months in prison. They were ordered to pay $5.2 million in restitution to Manson Insurance, prosecutors said.

Johnson said he will recommend that the judge order Mathwich to pay about $10 million in restitution during a hearing April 1.

Johnson said three different schemes allowed the trio to basically steal about $10 million going back to 1992. "It was like a ponzi scheme. They robbed Peter to pay Paul," he said. "They had very lavish lifestyles. They drove fancy cars and spent a lot of money."

Mathwich does not have to report to prison for at least three weeks, Johnson said.

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