Maryland Man Convicted in $20 Million Insurance Fraud Scheme
A federal jury last week convicted a Maryland man for conspiracy to commit insurance fraud, money laundering, filing false tax returns and identity theft, according to the office of U.S. Attorney for the district of Maryland.
According to court documents and evidence presented at trial, James Wilson, of Owings Mills, conspired with others to defraud insurance companies by obtaining over 30 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 Wilson also conspired to defraud individual investors to obtain funds that he then used to pay premiums on fraudulently-obtained life insurance policies. They said that to conceal the fraud, Wilson transferred the fraud through multiple bank accounts, including accounts in the name of trusts. Wilson filed false individual income tax returns for 2018 and 2019, which concealed approximately $5.7 million and $2 million respectively of fraud proceeds, officials said.
Wilson is scheduled to be sentenced on May 1. He faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud and money laundering; and a maximum penalty of three years in prison for each count of filing a false tax return. Wilson also faces a maximum penalty of two years in prison for each count of aggravated identity theft.