Roseau: Contractor Charged In $79K Insurance Fraud

Roseau: Contractor Charged In $79K Insurance Fraud
Roseau: Contractor Charged In $79K Insurance Fraud

Roseau County (trfnews.i234.me) — A Twin Cities-area contractor is charged in Roseau County with felony insurance fraud.

Roger Dean Welter II, 43, of East Bethel, Minnesota, is accused of seeking insurance payment using false or altered documents. Court records list one count of insurance fraud. The complaint alleges an attempted total of $79,426.50.

Hail claim tied to Roseau hotel property

The case centers on hail damage reported on July 13, 2023. The damage was reported at 1110 3rd Street NW in Roseau. Three storage buildings were also listed.

Records say the property owner used Farm Bureau as the insurer. Welter’s company, Welter Construction, was hired for repairs. The complaint says Welter then used subcontractors for parts of the work.

Invoices and quotes raised questions

The insurer reported concerns about invoices sent in December 2023. One painting estimate was listed at $65,700. The painter, Darin John Eisenzimmer, later told the insurer his final bill was about $33,800.

Another issue involved Engineered Roof Deicing, based in Sandy, Utah. The owner, Michael Gurr, told investigators he gave Welter a materials proposal for $47,774.66. He also provided a materials-and-installation quote for $76,431.17.

Gurr said no equipment was purchased. He said no work was done at the Roseau site. He also said he was not paid.

The complaint says the insurer received a document showing $79,426.50. Gurr later told investigators that the document was altered. He said it was not an official proposal from his company.

A third subcontractor, Palacios Maintenance, told investigators it did work at the Roseau property. Owner Gregorio Arroyo-Palacios said an invoice for $27,828.50 appeared accurate. He said travel added cost.

Charge and potential penalties

Welter is charged under Minnesota’s insurance fraud law. The complaint lists a maximum penalty of 20 years in prison and a $100,000 fine.

You can read more about the statutes here: Minn. Stat. 609.611 and Minn. Stat. 609.52. For background on the state agency involved, see the Minnesota BCA.

Charges are allegations. Welter is presumed innocent unless proven guilty in court.

I’m Chris Harper reporting for TRF News.

Roseau: Contractor Charged In $79K Insurance Fraud
Roseau: Contractor Charged In $79K Insurance Fraud

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