Lawyers say a gambling problem might have contributed to theft, forgery

A former Albert Lea insurance agent will serve 90 days in jail for felony theft and forgery charges.

Freeborn County District Court Judge Steve Schwab sentenced Reid Nelson on Friday after he pleaded guilty in May to theft and aggravated forgery.

Restitution will be argued at a later hearing, but prosecutor Christy Hormann with the Steele County Attorney’s Office is alleging Nelson took more than $220,000.

Nelson — through his company, Strong Agency, Inc. — failed to insure liability for a construction company even though the company made payments. He also provided fake certificates of insurance to the company.

In an unrelated incident, Nelson took more than $30,000 from the former owners of Town House Apartments, a complex which he managed on College Street, writing checks for personal interests.

Hormann, who prosecuted the case because Nelson is the brother of the Freeborn County attorney, said the money taken was a “substantial” amount.

She said Nelson took advantage of people who trusted him.

Nelson apologized and said he was not emotionally able to say much more.

“I’m deeply ashamed of what I’ve done,” he said.

Both Hormann and Nelson’s lawyer, Thomas Kraus of Waseca, hinted that Nelson may have had a gambling problem that contributed to his actions.

As a result, Schwab sentenced Nelson to complete a gambling assessment and to write letters of apology to the victims.

Nelson will report to jail Oct. 3 and was also authorized for work release.

He will be on probation for up to five years for the felony theft charge and up to 10 years for the forgery charge.

Nelson originally faced one count of aggravated forgery and one count of insurance fraud in one file and six counts of felony theft in the second, but the other charges were dismissed as part of the plea agreement.

Kraus said Nelson will lose his insurance license and is facing state civil penalties.