MADISON, WIs. (WSAU) - A third person charged in the Manson Insurance fraud case has pleaded out.
Former president Timothy Mathwich plead out on Tuesday to conspiracy to commit bank fraud and misappropriation of insurance credits. Assistant US Attorney Grant Johnson says prosecutors had been ready to go to trial, but that Mathwich's plea matches others in the case. "He's acknowledging, as did David Scholfield and Susan Brockman that over a substantial period of time they embezzled and misappropriated credits that due to their customers"
At the plea hearing on tuesday, Mathwich acknowledged to the court that the conspiracy resulted in Manson Insurance fraudulently obtaining $4.7 million in loans from River Valley Bank, as well as the fraud against Manson's customers which was another $5.6 million.
Mathwich faces 5 years in prison and 3 years on supervised release on each count when he's sentenced. Johnson says a large cash penalty could also be levied. "Scholfield and Brockman both have a Restitution order of approximately 5 million dollars and I would expect Mathwich would receive the same order."
Mathwich's sentencing date is scheduled for February 14, 2013