Montana man will plead to federal charge in derecho repair scam

CEDAR RAPIDS — A Montana man, previously charged in state court, has now been charged in federal court for a derecho repair scam, where he was advanced over $10,000 from a Cedar Rapids homeowner, but he never did any work because the money was spent on gambling.

William Allen Hurlbut Jr., 57, of Belgrade, Mont., is charged with one count of mail fraud and is planning to plead to the charge, according to court documents filed in U.S. District. He is accused of duping homeowner, Wayne Jones, into signing a contract for siding and roof repairs in September 2020.

Hurlbut convinced Jones to cash checks he received from insurance for repairs to his house and prepay Hurlbut for his proposed work, according to the criminal complaint. Instead of using money to purchase materials or do work, Hurlbut spent it on personal items and gambling.

As part of the scheme, Hurlbut would make purchases at a home improvement store but then return the items and pocket the cash. The fraud scheme continued through March of last year, according to court documents.

Hurlbut spent $6,990 at the Riverside Casino on the day he received a down payment from Jones for $5,287 and spent an additional $4,314 at the same casino shortly after receiving a second down payment, according to a complaint filed in Linn County District Court, where Hurlbut, also is charged with first-degree theft for the scam.

The theft charge in state court will be dismissed, Assistant Linn County Attorney Rena Schulte said, so federal prosecutors can continue their case.

Hurlbut filed his notice of consent Thursday to plead guilty to the federal charge. A plea hearing hadn’t been set as of Friday.

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