Former Mountain View business owner sentenced to federal prison for fraud

SAN JOSE, Calif. - A former Mountain View business owner has been sentenced to 16 months in federal prison for mail fraud.

Fauzia Lodhi, 53, previously pleaded guilty to committing mail fraud, according to federal prosecutors. She admitted she submitted fraudulent claims to State Farm Insurance in relation to a fire that occurred at her business in May 2006.

Lodhi owned the Postal Express on West El Camino Real in Mountain View. Before the fire, she'd provided inflated inventory and revenue statements to an insurance agent in order to induce State Farm to insure the business for more than it was worth. 

Prosecutors say she intentionally misrepresented the amount of insurance payments she was entitled to so she could use the money to pay off outstanding debts.

This week, a U.S. District Court judge also sentenced Lodhi to a three-year period of supervised released to be served when she gets out of prison. She must self-surrender in July and was also ordered to pay about $55,000 in restitution to State Farm Insurance.

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