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Ex-insurer gets 14 months for fraud

A former insurance agent was sentenced Thursday to 14 months in federal prison after she pleaded guilty in U.S. District Court to wire fraud and mail fraud.

Camelia “Camy” Bishop, 50, was sentenced under the terms of a plea agreement and also ordered to pay more than $25,000 in restitution, according to court documents and federal public defender Thomas O’Malley.

According to court documents, Bishop filed a claim with American Family Insurance for the beneficiary of a $25,000 life insurance policy in October 2009.

But in January 2010, Bishop filed a statement with American Family Insurance’s offices in Madison, Wis., and it appeared the statement bore the signature of the beneficiary. American Family Insurance processed the claim, opening an interest-bearing checking account in the name of the beneficiary.

The $25,000 proceeds could be accessed by the beneficiary using a checkbook drawn on that account, according to court documents. In April 2010, Bishop had American Family Insurance send the checkbook for that account to her offices, and she then filed a claim payment receipt with American Family.

The paperwork again appeared to have the signature of the beneficiary, court records said. Between April and May 2010, Bishop accessed the $25,000 in the account, according to the indictment. As part of her guilty plea, Bishop admitted to abusing a position of trust, according to court documents.

A third count of aggravated identity theft was dismissed as part of the plea agreement with federal prosecutors.

rgreen@jg.net