James William Wilson, Jr., $20M Insurance Fraud, Maryland 2023

BALTIMORE, Maryland - In a shocking case of white-collar crime, an Owings Mills couple has been sentenced to federal prison for their roles in a $20-million insurance fraud scheme.

James William Wilson, Jr., 78, and his wife, Maureen Ann Wilson, 77, both of Owings Mills, Maryland, were sentenced by U.S. District Judge Deborah K. Chasanow for their roles in connection with the insurance fraud scheme.

According to court documents and evidence presented at trial, the Wilsons conspired to defraud life-insurance companies by securing more than 40 life-insurance policies. The scheme included mispresenting policy applicants' health, wealth, and existing life-insurance coverage. Total death benefits from these policies exceeded $20 million.

James Wilson, a former Maryland life insurance broker, defrauded individual investors to receive funds that he used to pay premiums on the fraudulently obtained life-insurance policies. The Wilsons concealed the fraud by transferring the proceeds to multiple bank accounts, including accounts in the name of trusts. Then the Wilsons filed false individual income-tax returns for 2018 and 2019, which concealed the fraudulent proceeds from each year, approximately $5.7 million and $2 million, respectively.

After obtaining the policies, the Wilsons 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.

The IRS-CI investigated the case, with assistance from the Maryland Insurance Administration and the Maryland Office of The Attorney General. U.S. Attorney Kelly O. Hayes commended the IRS-Criminal Investigation Division for its work in the investigation.

Defendant information:

Defendant: James William Wilson, Jr.

Criminal charges: 13 counts of fraud, three counts of money laundering, two counts of filing false tax returns, and one count of aggravated identity theft.

Sentence: 12 years in federal prison.

Defendant: Maureen Ann Wilson

Criminal charges: 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.

Sentence: four years in federal prison.

Restitution: $18,705,520.30

Forfeiture: over $14.8 million in seized funds.

City and state: Baltimore, Maryland

Date: Not specified

Facts: The Wilsons 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.

Source: https://www.justice.gov/usao-md/pr/owings-mills-couple-sentenced-roles-20-million-insurance-fraud-scheme