Federal jury convicts former Olin woman accused of arson insurance scheme

CEDAR RAPIDS - A federal jury convicted a woman, formerly of Olin, after about two hours of deliberation Wednesday for her involvement with her then-boyfriend, a former Jones County Sheriff's deputy, in an arson plan to bilk an insurance company out of $152,000.

The jury convicted Beth Galloway, 42, of Camanche, after deliberating about two hours following a three day trial in U.S. District Court.

Galloway was convicted of one count of mail fraud, one count of using fire to commit mail fraud, and one count of conspiracy to commit money laundering.

Evidence at trial showed Galloway and James Plower made up and participated in a scheme to defraud Plower's insurance company between the Spring of 2013 and Spring 2014.

Galloway, as part of the scheme, drove a 16-year-old to Plower's vacant home in Martelle to set a fire in the home but both attempts failed, evidence at trial showed. Plower then deliberately set fire to the Martelle home and submitted an insurance claim in which he falsely claimed the fire was accidental.

As a result of the false claim, the insurance company mailed Plower a check for $66,497. Evidence also showed that Galloway and Plower agreed to conceal or launder the insurance proceeds in February and March of 2014, after learning that law enforcement was investigating the cause of the blaze.

Galloway and Plower took $10,000 of the proceeds from Plower's bank account and gave it to Galloway's friend, an Olin city clerk, who told investigators the couple told her they didn't want authorities to seize it, an affidavit filed in this case shows. At some point, Galloway also told the clerk that Plower set the fire.

Plower, also a former volunteer firefighter, previously pleaded guiltyto charges of mail fraud and use of fire to commit mail fraud. He was sentenced to 13 years in federal prison.

Plower also was ordered to pay more than $152,000 in restitution to the insurance company. He resigned from the sheriff's department in March 2014, after the investigation started.

The indictment shows Plower planned to burn down the house because he couldn't afford the needed repairs and wanted to rebuild on the foundation. He moved into Galloway's Olin residence and started in 2013 to participate in a plan to defraud the insurance company.

A criminal complaint in Plower's case shows Plower insured the Martelle house for unintentional damage and loss as a result of fire after he moved out.

An affidavit filed in Galloway's case states Plower's ex-wife told a fire marshal in 2014 that he made statements to her about burning down the property while they were married. They divorced in 2002, according to documents.

Galloway faces a minimum sentence of 10 years and a maximum sentence of up to 50 years in prison. She also faces a $750,000 fine and nine years of supervised release following her prison term.

Sentencing hasn't been set at this time.

Galloway also faced a second-degree arson charge in Jones County District Court for the house fire but that charge was dropped last October because she was being prosecuted in federal court.

l Comments: (319) 398-8318; trish.mehaffey@thegazette.com