Allison pleads no contest to attempted insurance fraud relating to 2005 fire

Fort Scott, Kan. -- A Fort Scott man pleaded no contest Friday in Bourbon County District Court to attempted insurance fraud.

Tim Allison pleaded to one count attempted fraudulent insurance act, a severity level eight, non-person felony.

The Kansas Attorney General's Office, which is prosecuting the case, will not seek incarceration if he's otherwise eligible for probation.

It is not known at this time whether Allison will get probation or prison time because a pre-sentence investigation hasn't been completed that determines his criminal history.

The felony count carries a maximum of 23 months in prison and a $100,000 fine.

Court records give the following account about why Allison was charged with insurance fraud:

Allison was employed as an insurance agent for Gross Insurance Agency in Fort Scott. In 2005, Charles and Brenda Parsons, of Fort Scott, had ownership interest in a building located at 15 S. Main St. The Parsonses periodically had insurance coverage of the building. The insurance policies were purchased through Gross.

Before Feb.15, 2005, the building was covered by an insurance policy issued by Farmers Alliance Mutual Insurance Company in McPherson, Kan.

On Feb. 1, 2005, Farmers Alliance sent a notice of cancellation of the policy to Gross Insurance and the Parsons. The notice said that if a premium wasn't paid by Feb. 15, 2005, the policy would be canceled. The Parsonses didn't pay the premium and the policy was canceled on Feb. 15.

On March 15, 2005, there was a huge fire in downtown Fort Scott.

During the fire, Charles Parsons gave Allison a check for $1,156 drawn on an account owned by Parsons. The date part of the check was left blank.

Allison put the date of "March 10" on the check knowing the date was actually the day prior to the fire and the day before Parsons gave the check to Allison, who then sent the check to an underwriter at Farmers Alliance.

On March 14, 2005, Allison informed Farmers Alliance that he had received a check for the premium that was canceled and he had mailed it to Farmers Alliance on March 11 when he knew that he actually received the check on March 10.

Two days later, on March 16, Farmers Alliance received a check made out to Farmers Alliance for $1,156.

The check was dated "March 10" and in the memo section of the check was written "15 S. Main (Kress bldg.)"

Parsons and Allison submitted a claim to Farmers Alliance for damage to the building that resulted from the downtown fire.

Last year, a judge cleared Parsons of criminal charges that were filed against him concerning the incident.

The charges against Allison surfaced from a grand jury investigation last year into alleged wrongdoing by Fort Scott city officials.

His sentencing is scheduled for Aug. 8 in Bourbon County District Court.