Car insurance scam results in deferred judgment for Iowa man

A 25-year-old Storm Lake man received a deferred judgment in Buena Vista County District Court for his part in an insurance-fraud scheme.

Court records indicate that last April, Nathan Tun of Storm Lake conspired with two acquaintances, Juan Alvarez and Jesus Mendez Miranda, in a scheme to take his 2013 Subaru Impreza to Texas or Mexico in order to conceal its location. After the vehicle was taken, Tun falsely reported to his insurer, American Family Insurance, that his vehicle was stolen and collected more than  $17,000 in insurance proceeds.

Tun was originally charged with felony theft in the first degree, conspiracy to commit a nonforcible felony, and making a fraudulent insurance application. The first two charges were dismissed and Tun was granted a deferred judgment on the remaining charge. The deferred judgment will result in the case being expunged from court records if Tun completes the terms of a three-year probationary period, pays a civil penalty of $750  and pays $17,107 in restitution.

“Insurance fraud is not a victimless crime.  We all pay for insurance fraud in the form of higher insurance costs,” Iowa Insurance Commissioner Doug Ommen said.  “I appreciate the hard work of our Fraud Bureau and all who participated in the prosecution of this case so Mr. Tun was held accountable for his actions.”