Idaho Woman Sentenced for Insurance Fraud
Summary
The Idaho Department of Insurance announced the sentencing of Michelle Stone for insurance fraud. Stone was found guilty of two felony counts and sentenced to probation, community service, and restitution. This case highlights the department's efforts to combat insurance fraud.
What changed
The Idaho Department of Insurance has announced the sentencing of Michelle Stone, a Post Falls resident, for two felony counts of insurance fraud. Stone was convicted on July 9, 2025, following an investigation by the department's Fraud Unit. The conviction stemmed from a fraudulent insurance claim filed with Allstate Insurance after reporting a burglary, where investigators found the supporting photographs were taken after the reported incident. The Kootenai County District Court sentenced Stone on October 14, 2025, to up to five years in prison (suspended), supervised probation, 150 hours of community service, and payment of court costs, fines, and restitution.
This enforcement action serves as a warning to individuals engaging in insurance fraud and underscores the importance of investigations conducted by the Department of Insurance in cooperation with law enforcement. The department encourages the public to report suspected insurance fraud. While this specific case involves an individual, the underlying message is that fraudulent claims lead to increased premiums for all policyholders, emphasizing the need for robust internal controls and compliance within the insurance industry.
What to do next
- Review internal controls for detecting fraudulent insurance claims.
- Ensure accurate reporting of all insurance-related incidents.
- Report any suspected insurance fraud to the Idaho Department of Insurance.
Penalties
Up to five years in prison (suspended), supervised probation, 150 hours of community service, payment of court costs, fines, and restitution.
Source document (simplified)
Post Falls Woman Sentenced for Insurance Fraud
Friday October 31, 2025 Contact: Julie Robinson, 208-334-4312
julie.robinson@doi.idaho.gov
BOISE, ID (October 31, 2025) – On July 9, 2025, a Post Falls jury found Michelle Stone guilty of two felony counts of insurance fraud. The Idaho Department of Insurance Fraud Unit investigated the fraud.
Stone’s conviction stems from her report of an alleged burglary to the Post Falls Police Department. Stone then filed a fraudulent-insurance claim with Allstate Insurance and supplied photographs to support the alleged burglary. Investigators determined that the photographs Stone provided were taken after the reported burglary date.
On October 14, 2025, the Kootenai County District Court sentenced Stone to:
- Up to five years in prison, suspended in favor of supervised probation
- 150 hours of community service
- Payment of court costs, fines, and restitution “This case demonstrates the importance of thorough investigation and cooperation between law enforcement and the Department of Insurance,” said Dean Cameron, Director of the Idaho Department of Insurance. “Insurance fraud is a serious crime that affects every honest policyholder through higher premiums.”
The Idaho Department of Insurance encourages anyone who suspects insurance fraud to report it online at doi.idaho.gov or by calling 1-866-939-7226.
About the Department of Insurance
The Idaho Department of Insurance has been regulating the business of insurance in Idaho since 1901. The mission of the Department is to serve and protect Idahoans by equitably, effectively and efficiently administering the Idaho Insurance Code and the International Fire Code. For more information, please visit us at doi.idaho.gov or email us at consumeraffairs@doi.idaho.gov.
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