Council Bluffs Woman Charged with Insurance Fraud

press-releases

Filed January 28th, 2026

Detected March 17th, 2026

Summary

The Iowa Insurance Division announced the arrest of Shannon Marie Doty for insurance fraud. Doty is accused of submitting a fraudulent claim to her insurer after an accident, despite not having an active policy at the time.

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What changed

The Iowa Insurance Division has charged Shannon Marie Doty, 53, of Council Bluffs, with one count of Insurance Fraud, Presenting False Information (Class D felony). The investigation revealed that Doty allegedly submitted a claim to her insurance provider for an automobile collision that occurred on March 16, 2023. Investigators determined Doty did not possess an active insurance policy at the time of the crash but subsequently obtained one and provided false statements to the insurer to claim coverage and payment.

This enforcement action highlights the risks associated with fraudulent insurance claims. Regulated entities, particularly insurers, should be aware of such schemes and ensure robust internal controls are in place to detect and prevent the submission of false information. While no specific compliance deadline is mentioned for other entities, the presumption of innocence applies until proven guilty in court. The charge itself serves as a warning against misrepresenting policy status or claim details to insurers.

What to do next

Review internal controls for detecting fraudulent insurance claims.
Ensure accurate verification of policy status prior to claim adjudication.

Penalties

Class D felony charge, potential penalties include fines and imprisonment if convicted.

Source document (simplified)

Council Bluffs Woman Charged with Insurance Fraud

Wednesday, January 28, 2026
Press Release

DES MOINES, IOWA – Shannon Marie Doty, 53, of Council Bluffs, was arrested on January 15, 2026, charged with one count of Insurance Fraud, Presenting False Information (Class D felony), following an investigation into a fraudulent insurance claim by the Iowa Insurance Division’s Fraud Bureau.

The investigation began in April 2024 after Doty submitted a claim to her insurance provider regarding an automobile policy. According to criminal affidavits, Doty's vehicle was involved in a collision on March 16, 2023. However, investigators determined that Doty did not have an active insurance policy at the time of the crash.

The affidavit alleges that Doty applied for and obtained an insurance policy after the accident had already occurred and then knowingly provided false statements to the insurer. She allegedly claimed the policy was active prior to the collision in a fraudulent attempt to obtain coverage and payment to which she was not entitled.

A warrant was issued on June 20, 2024, for Doty’s arrest, and on January 15, 2026, she was taken into custody by the Pottawattamie County Sheriff’s Office.

Note: A criminal charge is merely an accusation, and the defendant is presumed innocent until and unless proven guilty in a court of law.