Iowa Man Sentenced to Prison for Committing Insurance Fraud on Rental Properties

Timothy Daryle Sletten, a 32-year-old from Marshalltown, Iowa, was sentenced to 21 months in prison on January 11, 2024, for his involvement in insurance fraud. The conviction stems from an investigation by the Iowa Insurance Division’s Fraud Bureau, which began in January 2021.

Sletten was found guilty of engaging in fraudulent activities involving his residential rental properties. He executed two separate schemes to deceive his insurer, State Farm. The first incident occurred in 2018 after an EF-3 tornado struck Marshalltown, where Sletten submitted false work invoices to claim benefits. He repeated this fraudulent practice after a derecho impacted Iowa in 2020, presenting counterfeit invoices from contractors for repairs on his rental homes, which were never actually carried out.

These schemes led State Farm to disburse over $180,000 in loss claim benefits to Sletten. However, following his 2020 claim, State Farm launched an internal investigation that ultimately led to the denial of further disaster-related claims by Sletten.

As part of his sentence, Sletten is required to pay $125,003.68 in restitution and a $50,000 fine. After completing his prison term, he will also undergo a three-year term of federal supervised release. This case highlights the serious consequences of insurance fraud and the rigorous investigative efforts by insurance companies and regulatory bodies to combat such fraudulent activities.