DAVENPORT, Iowa - On Jan. 16, 2020, United States Chief District Judge John A. Jarvey sentenced Ashley Erin Murphy Schneider, age 37, of Muscatine, Iowa, to 18 months in prison for wire and mail fraud, announced United States Attorney Marc Krickbaum. Schneider was ordered to serve a term of three years of supervised release following her imprisonment, pay a $700 special assessment to the Crime Victims’ Fund, and pay $197,603.45 in restitution to American Family Life Assurance Company of Columbus (AFLAC).
On Sept. 17, 2019, Schneider pleaded guilty to five counts of wire fraud and two counts of mail fraud. Schneider became a licensed insurance producer in the state of Iowa in 2010 and in 2012 became an insurance agent appointed with AFLAC. On Sept. 24, 2015, investigators completed an AFLAC internal investigative report. According to the report, Schneider allowed unqualified businesses to receive payroll rates (businesses that did not have the required number of employees) and established fraudulent insurance policies for businesses that did not exist. AFLAC suffered a loss of $5,170.12 in advanced commissions and $650 in claims filed as a result of Schneider’s actions. Schneider was terminated for creation of the fraudulent insurance group policies effective Nov. 30, 2015.
Further investigation revealed that prior to Schneider’s termination, she set up a supplemental cancer policy through AFLAC for a minor child. AFLAC’s claim and explanation of benefits reflected the child was diagnosed with malignant neoplasm of the right lung on Nov. 24, 2015. Between Nov. 25, 2015, and January 9, 2017, 180 unique benefit claims were made on 54 claim numbers by Schneider. The investigation revealed that the minor child did not have cancer and AFLAC had paid out $192,408.33 to Schneider based on the fraudulent claims she submitted.
This matter was investigated by United States Postal Inspection Service and the Iowa Insurance Fraud Bureau. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Source: U.S. Department of Justice, Office of the United States Attorneys
