Police Briefs: Los Fresnos man pleads not guilty to fraud charge

HARLINGEN - A Los Fresnos man accused of selling non-existent hurricane insurance policies to Valley Baptist Health System appeared in federal court in Houston Wednesday and pleaded not guilty.

Michael N. Swetnam Jr., 54, of Los Fresnos, and Brent A. Carter, 46, of Harlingen are accused of defrauding VBHS out of about $4 million, a news release from the U.S. Attorney's Office said.

Swetnam appeared before U.S. Magistrate Stephen Smith and entered a plea of not guilty, his attorney Sheldon Weisfeld said. Weisfeld would not comment further. Bail was set at $100,000 with $10,000 secured.

A federal indictment charges Swetnam and Carter with conspiracy, mail fraud and wire fraud, U.S. Attorney Tim Johnson's office said in the release.

Carter is scheduled to appear in federal court this afternoon.

Swetnam and Carter face up to 20 years in prison and a $250,000 fine if convicted on the mail and wire fraud charges. The conspiracy charge carries a maximum prison sentence of five years and a $250,000 fine.

The trial is set to begin Aug. 10.