Ankeny man pleads guilty to insurance fraud

DES MOINES – Authorities announced a 39-year-old Ankeny man pled guilty yesterday to one count of wire fraud when he assisted in defrauding insurance companies out of insurance premiums.

According to a news release from the U.S. Attorney’s Office in the Southern District of Iowa, Dinesh Sethi, president of DES Staffing Services in Des Moines, admitted he and Director of Finance Randy Stringer fraudulently reduced workers compensation insurance premiums by reducing payroll from higher to lower premium job classifications.

Sethi is currently on release until his December 19, 2011 trial, but he faces up to 20 years in federal prison, a fine of up to $250,000, or both, and restitution, the report said.

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