Two former investigators at Farm Bureau Financial Services have filed a lawsuit against the company, accusing it of fraud, racketeering, and wrongful termination. The lawsuit claims that the insurer’s management knew about illegal activities by employees but chose not to report them to state regulators. Instead, they allegedly shifted the financial burden of these fraudulent claims onto policyholders and competitors.
The suit was brought by James Newton and Brent Meskimen, who worked for Farm Bureau’s special investigations unit. Newton spent 13 years with the company and rose to the position of director of investigations, while Meskimen managed the special investigations team for Farm Bureau’s Property & Casualty Insurance division. Both say they were fired in November 2023 after insisting they would report fraud to authorities even if their supervisors objected.
According to the lawsuit, Farm Bureau’s management ignored multiple reports of fraudulent actions dating back to 2011. One example involves a Kansas agent accused of forging hundreds of client forms, some reportedly without client permission. Though the agent was fired, the suit claims the company never informed the Kansas insurance fraud unit.
Another case highlights an Iowa agent who allegedly changed insurance coverage after a client’s 1991 Ford Mustang was destroyed in a fire. The client was the agent’s father. Newton reportedly urged his boss to report the case to the Iowa Department of Insurance Fraud Unit but was told the claim would be quietly paid out from a “slush fund” and the agent wouldn’t face discipline.
The lawsuit also points to a 2023 fire in Nebraska as the event that pushed Newton and Meskimen to take legal action. They say one Farm Bureau adjuster illegally entered a detached garage near the fire scene by picking the lock with a credit card. This adjuster was later fired. Yet, the company allegedly tried to cover up the incident by creating a fake claim using a canceled insurance policy from an unrelated Minnesota customer.
Newton and Meskimen say management then told their investigation team to stop looking into the Nebraska fire claim. They grew frustrated with Farm Bureau’s refusal to address fraud and decided they could no longer remain silent.
The lawsuit names several top executives, including CEO Daniel Pitcher, assistant general counsel Paul Swinton, and Ronald Mead Jr., chief operating officer for property casualty at Farm Bureau and its parent company, FBL Financial Group.
Farm Bureau Financial Services, based in West Des Moines, offers various insurance products including auto, home, life, and property coverage. The company has not commented on the lawsuit. This legal action sheds light on serious allegations that may have significant consequences for the insurer and its customers.