08-19-04 -- Nicholson, Derek et. al. -- Indictment -- News Release

Couple Who Faked Drowning to Collect Life Insurance Benefits Indicted on Fraud and False Distress Charges

TRENTON - A Tinton Falls couple was indicted today in connection with their scheme to report a fake drowning at a Long Branch beach for the purpose of collecting on a $1 million life insurance policy, U.S. Attorney Christopher J. Christie announced.

A federal Indictment unsealed today details a scheme by Derek Nicholson, a/k/a "Jacob Milsner," a/k/a "Michael Way," and "Anthony Jackson,"31, and Nikole Nagle, a/k/a "Nikole Nicholson," 25, whereby they attempted to collect on a $1 million life insurance policy on Mr. Nicholson after falsely claiming that he had disappeared while swimming at a New Jersey beach.

The two-count Indictment charges both defendants with one count of conspiracy to defraud State Farm Life Insurance Company and one count of false distress.

According to the Indictment, the defendants devised a scheme whereby Mr. Nicholson would obtain a $1 million life insurance policy from State Farm and then stage his disappearance in order to make it appear that he was deceased, and thus enable Ms. Nagle to collect the insurance benefits.

The Indictment alleges that on June 11, 2003, Derek applied for a $3 million life insurance policy naming Ms. Nagle as the beneficiary. To obtain this life insurance policy, Derek falsely inflated his income on the application, according to the Indictment.

The Indictment states that Derek then obtained two prepaid cellular telephones in the fictitious names of "Jacob Milsner" and "Michael Way." On July 24, 2003, after State Farm issued a $1 million life insurance policy, Derek used the Milsner telephone to make travel arrangements aboard Amtrak to California in the name of "Anthony Jackson."

According to the Indictment, on July 26, Mr. Nicholson and Ms. Nagle traveled to a beach located in Long Branch in order to stage Mr. Nicholson's disappearance. While at the beach, Ms. Nagle falsely reported to a lifeguard, and subsequently to law enforcement, that Mr. Nicholson had disappeared while swimming in the ocean. That same day, Mr. Nicholson, using the train tickets that he had obtained in the name of "Anthony Jackson," boarded an Amtrak train to California, according to the Indictment.

On August 1, Ms. Nagle made a false claim for the proceeds of the life insurance policy to a representative of State Farm, according to the Indictment.

On August 2, Mr. Nicholson used the "Milsner" cellular telephone in Illinois to call the Sea Bright Police Department located in Sea Bright and falsely report the sighting of a body in the ocean that matched his own physical description, according to the Indictment.

State Farm has not made payment on the life insurance policy, according to Assistant U.S. Attorney Karl H. Buch.

The defendants were arrested on May 12, 2004, after the government obtained complaints and warrants.

Despite Indictment, every defendant is presumed innocent, unless and until found guilty beyond a reasonable doubt, following a trial at which the defendant has all of the trial rights guaranteed by the U.S. Constitution and federal law.

Christie credited Special Agents of the FBI Red Bank Field Office, under the direction of Special Agent in Charge Joseph Billy, Jr., and Special Agent Ronald Volk of the United States Coast Guard Investigative Service located in Cape May.

The Government is represented by Assistant U.S. Attorney Karl H. Buch of the Criminal Division in Newark.

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Defense Attorneys:

Derek Nicholson - John Yauch, Esq., Newark

Nikole Nagle - Katherine M. Brown, Esq., Morristown