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A Prospect woman convicted of mail fraud in October will serve a prison sentence for her scheme to defraud multiple insurance companies and will pay more than $1 million in restitution. Gail Kubovchik, of 6813 Carslaw Court, Prospect, was sentenced to three years and five months imprisonment in U.S. District Court Monday for one count of mail fraud. Chief Judge John G. Heyburn II also sentenced Kubovchik to three years’ supervised release following incarceration. Kubovchik will pay $1,075,504.66 in restitution. Kubovchik, 57, pleaded guilty in October to a scheme involving her business – The Service Agency – to defraud multiple insurance companies and insurance premium finance companies in the total amount of $1,104,066 between December 2005 and February 2007. Kubovchik fraudulently applied for and received dozens of bogus insurance policies on railroad cars that did not exist. She applied for and received insurance policies for railroad cars from multiple insurance companies, including the Fireman’s Fund, Zurich Insurance and United Shortline. She obtained bogus insurance policies by creating fictitious companies that allegedly owned the railroad cars. To accomplish this, she created fictitious businesses using various Web sites and obtained actual insurance policies on the railroad cars allegedly owned by the bogus companies. She would then obtain financing for the bogus insurance policies from insurance premium finance companies, including Baytree Finance Company, Arizona Premium Finance Company and Premium Payment Plan. Kubovchik’s scheme to defraud involved multiple premium finance loans, each from different finance companies, on the same bogus insurance policy. She used proceeds from the first loans to pay monthly premiums on the bogus insurance policy and kept the second loan’s proceeds. For each of the fraudulent loans obtained on the bogus insurance policies, Kubovchik caused documents to be mailed in the U. S. Postal Service by the finance companies. Ultimately, Kubovchik caused 45 fraudulent loans to be funded by Baytree Finance Company, three by Arizona Premium Finance Company and 31 by Premium Payment Plan. The total loss was $1,104,066.