April 19, 2024

Muscatine woman sentenced to federal prison for fraud

DAVENPORT — A Muscatine woman has been sentenced to 18 months in federal prison for wire and mail fraud.

Federal prosecutors for Iowa said Friday that Ashley Erin Murphy Schneider, 37, was sentenced Thursday in Davenport's federal courthouse after pleading guilty to five counts last year. Schneider was also ordered to pay nearly $200,000 in restitution and fines.

Schneider was a licenced insurance agent who, among other things, established fraudulent insurance policies for businesses that did not exist, investigators said. She also in 2015 set up a supplemental cancer policy for a child that paid out more than $192,000 for cancer treatment claims. It turned out that the child did not have cancer, prosecutors said.