Red Lake Falls Insurance Claim Leads to Felony Charge

Red Lake Falls (trfnews.i234.me) — Wendy Sue Gustafson faces a felony insurance fraud charge in Red Lake County District Court.

Prosecutors allege Gustafson submitted a false insurance claim involving Amazon packages reportedly stolen from her apartment.

The reported claim value was approximately $3,600, according to the criminal complaint.

Investigators allege statements and records connected to the claim contained major inconsistencies.

Amazon Packages Reported Missing

Gustafson contacted Farmers Insurance on July 30, according to the complaint.

She allegedly reported that Amazon packages had disappeared from her Red Lake Falls apartment.

Gustafson said the packages contained household goods, cleaning products, and cosmetics.

She initially reported three packages, according to prosecutors.

Gustafson said she brought the packages inside before briefly leaving the apartment.

She said the home was locked and the windows were secured.

No forced entry was reported.

Gustafson later filed a report with the Red Lake County Sheriff’s Office.

Farmers Insurance asked Gustafson for records showing that she owned the claimed items.

Gustafson provided screenshots showing products in an Amazon shopping cart.

The listed products totaled approximately $3,516.63.

The insurer then requested actual purchase receipts, according to the complaint.

Gustafson allegedly said the Amazon account had been closed.

She also said she could no longer access receipts or related credit card records.

During another interview, Gustafson reportedly described five Amazon boxes instead of three.

Farmers later referred the claim to its Special Investigations Unit.

Investigators obtained records from Amazon during the fraud investigation.

The complaint says those records showed no qualifying deliveries to Gustafson’s Red Lake Falls apartment.

The reviewed period covered May through December.

Prosecutors allege that evidence conflicted with statements made during the insurance claim process.

The complaint also cites differences involving package counts and the claimed purchase documentation.

Gustafson is charged under Minnesota Statute 609.611.

The statute prohibits material false statements or concealed facts in insurance claims made with fraudulent intent.

Sentencing is based on value under Minnesota Statute 609.52.

The complaint lists an alleged claim value around $3,600.

That value falls within a tier carrying up to five years and a $10,000 fine.

The charging document separately lists a 20-year maximum, creating an apparent penalty discrepancy.

The court file number is 63-CR-26-135.

Public case information is available through Minnesota Court Records Online.

The complaint contains allegations and does not establish Gustafson’s guilt.

Gustafson is presumed innocent unless proven guilty in court.

I’m Adrian Cole reporting for TRF News.