Former Nampa city councilor sent to jail

February 4, 2014 

Robert J. Schmidt, 54, pleaded guilty in November to one count of insurance fraud.

Third District Canyon County Judge George Southworth sentenced Schmidt to four to 12 years in prison, but suspended all but 90 days.

When he's released from jail, Schmidt will have to serve 12 years of probation and attend a behavoir modification class. He was also ordered to pay $47,639 in restitution, with monthly payments of $500 to commence in June.

The victims and the restitution amounts are: Safe Ride Solutions, $25,192; Multi-Home Care Services, $9,000; Rocketchun Holden, $8,735; Nampa Babe Ruth League, $3,821; and Lenny Chow, $889.

The criminal case was prosecuted by the Idaho Attorney General's Office to avoid a conflict with Canyon County officials who had worked with Schmidt when he was on the Nampa City Council from 2002 to 2007.

Schmidt admitted that he misappropriated money from his insurance company, made transactions without an appropriate license and made false statements in connection with insurance transactions.

He was accused of pocketing clients' money and presenting falsified cancellation requests regarding insurance policies. Prosecutors said the illegal actions took place beginning in December 2010.

In May, 2011, the Idaho Department of Insurance revoked his license for "using fraudulent, coercive or dishonest practices." He was assessed $7,000 in fines and penalties in that civil case.

The complaint said a Nampa restaurant owner paid Schmidt for a policy, but Schmidt never passed it along to the insurance company. The policy was canceled without the knowledge of the owner, who didn't learn he wasn't covered until after his restaurant caught fire.

In 2011, Schmidt was accused by the Babe Ruth group of misappropriating money intended for insurance premiums.

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