WAUSAU, WI (WTAQ) - A former president of Manson Insurance in Wausau has agreed to plead guilty to two federal charges involving fraud schemes that totaled $7.5 million.
Timothy Mathwich was scheduled to go on trial next month on 24 fraud charges. Instead, he’ll plead guilty next Tuesday to two conspiracy counts involving bank fraud and misappropriating insurance credits.
A grand jury in Madison indicted Mathwich September 12th.
Among other things, prosecutors said he was involved in a scheme that caused Wausau’s River Valley Bank to lose almost $2 million in 2008. The indictment said Mathwich forged insurance premium financing notes for customers who never asked for them – and the notes were then sold to the bank.
Former Manson CEO David Scholfield and former company treasurer Susan Brockman were sent to prison for their roles – and both were ordered to pay more than $5 million in restitution to victimized customers.
The Mathwich plea deal also includes restitution.