February 13. 2013 7:00AM - Last modified: February 13. 2013 7:11AM

MADISON - Former Manson Insurance CEO sentenced in fraud scheme

The former president and CEO of a Wausau-based insurance company was sentenced in federal court Tuesday to five years in prison and three years extended supervision on fraud charges.

Timothy I. Mathwich, 62, of Wausau appeared at a sentencing hearing in Madison and will begin his prison sentence April 18. Mathwich pleaded guilty Nov. 27 to charges of conspiracy to commit bank fraud and conspiracy to misappropriate insurance credits, according to documents filed in the Western Wisconsin District of U.S. Court in Madison. Mathwich also was ordered to spend three years on extended supervision and undergo counseling after his release from prison, but he will not be required to pay a fine.

Mathwich was indicted June 20 by a grand jury on 24 federal criminal charges in connection with a $1.9 million bank fraud scheme, a $57,505 mail fraud scheme, and a $5.6 million insurance embezzlement scheme, according to court documents. All but two charges were dismissed as part of a plea agreement.

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