Friday, 10 January 2014 18:25

WI Shop Owner Sentenced to 10 Years for Insurance Fraud

A Rhinelander, WI, body shop owner will spend the next 10 years in prison and have to repay over $1.3 million for defrauding insurance companies.

43 year old John (Jack) Henricks III was sentenced Jan. 14 in federal court for using the U.S. Mail to defraud insurance companies. Federal Judge Barbara Crabb pronounced sentence after Henricks plead guilty to the charges last August.

Prosecutors say Henricks used his prior business, Custom Collision, to defraud 19 auto insurance companies. Henricks would stage auto accidents and send in false work orders in order to collect insurance on the vehicles. Assistant US Attorney Tim O'Shea says Oneida County officials did the bulk of the work. "They recognized that this was an important case, they recognized that it was important to do the hard work to hold Mr. Henricks accountable, and the credit in this 10 year sentence goes to the Oneida County sheriff's department.

Henricks was found guilty Aug. 14 on charges that he used his prior business, Custom Collision, a body repair shop in Rhinelander, to defraud 19 auto insurance companies out of more than $1.3 million by staging accidents and creating false work invoices, according to the release.

U.S. District Court Judge Barbara Crabb said during sentencing that Henricks attempted to thwart law enforcement even during the process of identifying assets to liquidate in order to pay the more than $1.3 million restitution he owes, and that he couldn’t be trusted “to tell the time of day,” according to a news release. Henricks was given the full sentence because of his lack of cooperation, according to the release.

Oneida County sheriff's officials have been trying to recover some of that money, but Sheriff Grady Hartman says Henricks has spent time trying to hide or get rid of the money so it can't be collected. "We're not going to be able to find all the money for restitution, Mr. Henricks is going to have to make some payments on that after he's done with his lengthy prison sentence."

 

Henricks pleaded guilty to the accusations in August. Henricks had also been charged in state court in the scheme. Those charges were dismissed after the federal case was launched.

Henricks, also known as Jack Henricks, achieved some fame last year when he drove a snowmobile 190.7 mph, breaking a 24-year-old Guinness world record for the fastest pass on ice, American Snowmobile magazine reported last January. The record was broken at a National Straightline Snowmobile Racing event in Menomonie. Henricks built the snowmobile he used to break the record, his attorney said.

The investigation was conducted by the Oneida County Sheriff’s Department and the Federal Bureau of Investigation.

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