A Davenport insurance agent faces multiple charges for allegedly submitting fraudulent insurance policy applications and receiving more than $5,000 in commission he was not entitled to over a three-year period, according to the Iowa Insurance Fraud Bureau.
Jonathan Adam Schlue, 35, last known address in the 4300 block of Wittman Drive, was booked into the Scott County Jail at 6:52 p.m. on one count of ongoing criminal conduct, three counts of insurance fraud, two counts of fraudulent sales practices, two counts of conspiracy to commit a non-forcible felony, and second-degree theft.
The most serious charge, ongoing criminal conduct, is a Class B felony punishable by up to 25 years in prison. The remaining charges are all a Class D felony each punishable by up to five years in prison.
Online jail records show he paid a $25,000 bond through a bail bond company and was released from the jail 16 minutes after he was booked.
He made an initial appearance on the charges Thursday morning. A preliminary hearing is scheduled June 14.
The Iowa Insurance Fraud Bureau alleges in arrest affidavits filed in Scott County District Court that Schlue “orchestrated” or participated in the submission of 17 fraudulent insurance policy applications between June 2015 and July 2018.
In doing so, he received $5,766.99 in commission earnings he was not entitled to.
He spoke with clients about purchasing health insurance and they gave him their personal information to complete the alleged application.
Schlue would often mislead them into believing that they had to purchase additional insurance coverage as a condition of being eligible for insurance coverage, according to the affidavits.
He used their information to complete insurance policy applications not for health insurance. During this time, certain clients were unknowingly without health insurance coverage.
Between October 2017 and February 2018, he participated in the submission of four fraudulent insurance policy applications to an insurer. Each application was written in the name of a fictitious person.
Between August 2017 and December 2017, Schlue and a former insurance agent participated in the submission of 15 fraudulent insurance policy applications to an insurer, three of which were written in the names of persons who are known not to exist.
He was paid commissions as a result of the fraudulent insurance policy application submissions and gave the former agent a portion of the funds.
In September 2018, he conspired with another agent in the completion of an underwriting insurance policy application. The agent, through Schlue’s direction, posed as a client in a phone interview with the insurer to complete the application process.
In July 2015, Schlue submitted an insurance policy application to an insurer that listed a family member as the person seeking insurance.
He and the family member failed to disclose a pre-existing medical condition which would have disqualified the family member from being insured.
The insurance policy application was approved and Schlue's family member submitted a claim for benefits, according to the affidavits.