Maryland Woman Convicted in $20M Insurance Fraud Scheme

Baltimore, Maryland – A federal jury has convicted a Maryland woman 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, 77, of Owings Mills, conspired with her husband James Wilson to defraud insurance companies by obtaining more than 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. 

After obtaining the policies, Maureen and James Wilson used forged signatures to make themselves, and other nominees they controlled, the owners and beneficiaries of the life insurance policies.  Maureen Wilson also impersonated other people when speaking with the life insurance companies.

Maureen Wilson and her husband concealed the fraud by transferring the money they made from the fraud through multiple bank accounts, including accounts in the name of trusts.  She also 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.

She 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.  Maureen Wilson was acquitted of one count of mail fraud.

Sentencing is scheduled for June 20. Maureen Wilson 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 determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

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

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

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

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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