Davenport man, Clinton woman sentenced for health-care insurance fraud

Local News

Adam Schlue, Whitney Roth

Insurance producers Jonathan Adam Schlue, of Davenport, and Whitney Michelle Roth, of Clinton, have been sentenced in Scott County District Court in a health-care insurance fraud scheme.

The sentences follow an investigation, which began in 2019, by the Iowa Insurance Fraud Bureau, a news release says. “The investigation concluded Schlue and Roth deployed various schemes related to the sale of primary and supplemental health insurance,” the release says. “These schemes resulted in increased compensation through commissions the agents were not entitled to.”

“Supplemental health insurance policies can be a great product for consumers to fit their needs but they shouldn’t be added on without the consumer’s knowledge,” Iowa Insurance Division spokesman Chance McElhaney said. “It’s important for consumers to understand what they are purchasing. If Iowans have questions or concerns about products being sold by an insurance agent they can contact the Iowa Insurance Division for assistance.”

In March of 2018, the Iowa Insurance Division issued an order to revoke Roth’s insurance producer’s license and ordered her to pay a $500 civil penalty.

In May of 2019, Roth was charged with fraudulent submission (Class D felony), fraudulent sales practices (Class D felony), conspiracy to commit a non-forcible felony (Class D felony), and two counts of insurance fraud – application submission (Class D felony). 

In May of 2021, Roth pleaded guilty to one count each of conspiracy to commit a non-forcible felony, insurance fraud – application submission, and fraudulent sales practices under $10,000. After her guilty plea, Roth received a deferred judgment, was ordered to serve three years of probation, and received a civil penalty of $750.

In May of 2019, Schlue was charged with four counts of fraudulent submission (Class D felony), four counts of fraudulent sales practices (Class D felony), two counts of conspiracy to commit non-forcible felony (Class D felony), second-degree theft (Class D felony) and ongoing criminal conduct (Class B felony). 

In March of 2020, an additional charge of fraudulent sales practices under $10,000 (Class C felony) was filed.  Additionally in March of 2020, the Iowa Insurance Division issued an order revoking Schlue’s insurance producer’s license and permanently prohibited him from applying for future licensure in the state.

In July of 2021, Schlue pleaded guilty to one count of  insurance fraud, one count of conspiracy to commit a non-forcible felony, and one count of fraudulent sales practices under $10,000. Schlue received a deferred judgment, was placed on three years of supervised probation, received a civil penalty of $750, and was ordered to pay restitution of $2,250.

Iowans with information about insurance fraud may contact the Iowa Insurance Division’s Fraud Bureau at 515-654-6556, the release says.

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