Ex-Spokane Man Must Repay Money He Embezzled
A former Spokane man convicted of several counts of mail fraud and embezzlement was ordered to pay $201,000 in restitution and serve a year in prison.
Thomas J. Hobbs, now of San Antonio, Texas, pleaded guilty in November to four counts of mail fraud and two counts of embezzlement in connection with his operation of Spokane-based health plans and a management company.
U.S. District Judge Fred Van Sickle also ordered Hobbs to serve three years of supervised release after he serves the prison term, it was announced Friday.
Hobbs originally had been charged with 17 counts of mail fraud, embezzlement and false statements under federal pension law.
According to an indictment handed down by a federal grand jury last January, more than $1 million was collected by the Western Business Association, Western Timber Association, Western Alliance for Agriculture and Western Plans.
Plans sold by the associations provided health insurance to 72 Northwest companies. Hobbs collected more than $1 million in premiums paid for coverage of more than 3,000 individuals.