BALTIMORE, MD—A Baltimore County couple has been sentenced to federal prison for their roles in a $20 million insurance fraud scheme, federal prosecutors announced this week.
U.S. District Judge Deborah K. Chasanow sentenced James William Wilson, Jr., 78, to 12 years, and his wife, Maureen Ann Wilson, 77, both of Owings Mills, to four years. Both were ordered to pay more than $18.7 million in restitution, and the court issued a forfeiture order for over $14.8 million in seized funds.
James Wilson was convicted on 13 counts of fraud, three counts of money laundering, two counts of filing false tax returns, and one count of aggravated identity theft. Maureen Wilson was sentenced for 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.
According to court documents and evidence presented at trial, the Wilsons conspired to defraud life insurance companies by obtaining more than 40 policies with total death benefits exceeding $20 million. They misrepresented policy applicants’ health, wealth, and existing life insurance coverage.
James Wilson, a former Maryland life insurance broker, also defrauded individual investors, using their funds to pay premiums on the fraudulently obtained policies. The couple concealed their illicit gains by transferring proceeds to multiple bank accounts, including those in the name of trusts. They also filed false individual income tax returns for 2018 and 2019, concealing approximately $5.7 million and $2 million in fraudulent proceeds, respectively.
Prosecutors said the Wilsons used forged signatures to make themselves and other nominees they controlled the owners and beneficiaries of the policies. Maureen Wilson also impersonated others when communicating with life insurance companies.
The IRS Criminal Investigation – Washington, D.C. Field Office investigated the case, with assistance from the Maryland Insurance Administration and the Maryland Office of the Attorney General.
Photo by Sora Shimazaki from Pexels
