Summary
The Supreme Court of Montana affirmed the district court's order requiring Cynthia Mae Henderson to pay $22,602.24 in restitution to Fire Insurance Exchange. Henderson had pleaded guilty to felony insurance fraud and theft after submitting a fraudulent supplemental insurance claim. The court held that her admitted criminal conduct caused the insurer a pecuniary loss and that restitution was statutorily authorized under Montana law.
Topics
Practice areas
Questions Presented
- Whether the District Court erred by ordering Henderson to pay $22,602.24 in restitution to Fire Insurance Exchange when the insurer paid that amount on an initial claim but did not pay the later fraudulent replacement-cost claim.
Holdings
- The District Court properly ordered Henderson to pay $22,602.24 in restitution to Fire Insurance Exchange because her guilty plea admitted criminal conduct that resulted in a pecuniary loss to FIE.
Key quotations
“As a result, Henderson “has admitted” to a criminal offense that resulted in a pecuniary loss to victim FIE and for which the District Court was statutorily authorized to impose an obligation of restitution.” (¶ 13)
Factual background
Fire Insurance Exchange paid Henderson $22,602.24 for property damage and items she claimed had been stolen from her home. Henderson later submitted a supplemental replacement-cost claim supported by receipts that FIE determined were fraudulent, although FIE did not pay that supplemental claim. Henderson pleaded guilty to knowingly making false or misleading statements and presenting a false receipt to her insurer to obtain money. The District Court ordered her to reimburse FIE for the $22,602.24 paid on the initial claim.
Procedural history
Henderson pleaded guilty in the First Judicial District Court to felony insurance fraud and theft. The District Court sentenced her to six years, deferred, and ordered her to pay $22,602.24 in restitution to Fire Insurance Exchange. She timely appealed the restitution obligation to the Montana Supreme Court, which affirmed.