Maryland Woman Convicted in $20M Insurance Fraud Scheme

A federal jury convicted a Maryland woman yesterday for conspiracy to commit insurance fraud, and related charges for wire fraud, money laundering and filing false tax returns.

According to court documents and evidence presented at trial, Maureen Wilson, of Owings Mills, conspired with her husband James Wilson 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. Wilson also conspired to defraud individual investors to obtain funds that she used to pay premiums on fraudulently obtained life insurance policies.

To conceal the fraud, Wilson and her husband transferred the money they made from 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 did not report as income the approximately $5.7 million and $2 million, respectively she made from her fraud.

Wilson was convicted of one count of conspiracy to commit mail and wire fraud, four counts of mail fraud, two counts of wire fraud, one count of conspiracy to commit money laundering, one count of money laundering and two counts of filing a false return. She was acquitted of one count of mail fraud.

Maureen Wilson is scheduled to be sentenced on June 20. She 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. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Kelly O. Hayes for the District of Maryland and Special Agent in Charge Kareem A. Carter of IRS Criminal Investigation’s Washington, D.C. Field Office made the announcement.

IRS Criminal Investigation is investigating the case with assistance from the Maryland Insurance Administration and the Maryland Office of the Attorney General.

Trial Attorneys Shawn Noud and Richard Kelley of the Justice Department’s Tax Division and Assistant U.S. Attorneys Matthew Phelps and Philip Motsay for the District of Maryland are prosecuting the case.