United States Attorney Erica H. MacDonald today announced a federal indictment charging JOHN DAVID PAULSON, 56, with two counts of mail fraud. PAULSON will make his initial appearance in U.S. District Court before a Magistrate Judge at a later date.
According to the allegations in the indictment, PAULSON owned and operated the David Paulson Agency Inc., an independent insurance agency located in Wadena, Minnesota. Between 2011 and 2018, PAULSON engaged in a scheme to defraud by stealing money he collected from his clients for their insurance premiums. As part of the scheme, PAULSON provided fake invoices to his clients that fraudulently inflated the amount of money they owed to their insurance companies. Instead of paying over the premiums to the insurance companies, PAULSON used much of his clients’ money for his own purposes, including paying his home mortgage and personal credit card bills. PAULSON’s scheme left his clients owing large amounts to their insurance companies or without insurance policies. In total, PAULSON stole approximately $524,000 from his clients.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the United States Postal Inspection Service. United States Attorney MacDonald also thanks the Wadena County Sheriff’s Office for their assistance with the investigation.
Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.