A Maryland husband and wife have been sentenced to 12 years in prison and four years in prison, respectively, after their convictions for a $20 million scheme to commit insurance fraud.
In addition to their prison sentences, a judge for the district of Maryland ordered both to serve three years of supervised release and to pay approximately $16 million in restitution to victims of the insurance fraud scheme and $2.7 million in restitution to the United States. She also ordered the Wilsons to forfeit approximately $14.8 million in seized funds.
According to court documents, James and Maureen Wilson, of Owings Mills, conspired to defraud insurance companies by obtaining over 40 life insurance policies for applicants by mispresenting their health, wealth, and existing life insurance coverage. The total death benefits from these policies exceeded $20 million.
Prosecutors said they also conspired to defraud individual investors to obtain funds that Wilson used to pay premiums on fraudulently obtained life insurance policies.
To conceal the fraud, the Wilsons transferred the money they made from the fraud through multiple bank accounts, including accounts in the name of trusts. The Wilsons filed false individual income tax returns for 2018 and 2019, which did not report as income or pay tax on the approximately $5.7 million and $2 million, respectively, they made from the fraud.
The Internal Revenue Service investigated the case with assistance from the Maryland Insurance Administration and the Maryland Attorney General.
Topics
Fraud
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