For Immediate Release
Media Contact: Bob Cooper
(208) 334-4112

Date: August 31, 2012

Martha Feely Sentenced for Insurance Fraud

(Boise) – Caldwell resident Martha Patricia Feely was sentenced today for insurance fraud, Attorney General Lawrence Wasden said.  Fourth District Judge Timothy Hansen sentenced Feely to up to 10 years in prison with two years fixed.  The court suspended the prison sentence and retained jurisdiction for up to 365 days.

Feely, 46, pleaded guilty on July 6, 2012, to three counts of insurance fraud.  By pleading guilty, Feely admitted that, in 2009, she submitted forged performance bond documents to the Ada County Highway District, the Boise City Planning and Zoning Commission and the Boise City Department of Finance and Administration.  One of the fraudulent bonds Feely submitted was to insure performance on a sewer excavation project located on Verde Street in the City of Boise.

Performance bonds are necessary to bid on public jobs.  These bonds ensure that a contractor will complete the contract to the agreed upon specifications.  A construction company is required to submit proof of bonding before the public entity will entertain a bid from the contractor.  The bonds also ensure that subcontractors and suppliers will be paid.

“There are many companies that work diligently and ethically to bid on public works jobs,” Attorney General Wasden said.  “When a company does not follow Idaho law by paying for proper bonding, it puts honest business owners at a disadvantage when competing for public projects.”

Feely was previously convicted of insurance fraud in California and was on felony probation when she submitted forged performance bonds in Idaho.

The case was referred to the Attorney General’s Insurance Crimes Unit by the City of Boise and Post Insurance.  The case was prosecuted by Deputy Attorney General Ken Robins.

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