JEFFERSON CITY, MO – A pair of Columbia residents are facing serious time in federal prison after admitting to their roles in a brazen $1.2 million insurance fraud scheme. Latoya Marie Brown, 37, formerly of Columbia and Kansas City, and Cedrick Shawndale Goldman, 46, of Columbia, each pleaded guilty today to conspiracy to commit wire fraud and conspiracy to commit mail fraud, admitting they bilked six insurance companies out of over a million dollars.
The scheme, which ran from June 2017 to July 2020, revolved around filing false claims for injuries sustained in staged or fabricated car accidents. According to court documents, Brown and Goldman weren’t interested in getting medical attention; they were interested in the payouts. The pair, along with other unnamed conspirators, falsely claimed injuries and promised to cover resulting medical bills – a promise they never kept.
Instead of settling debts with healthcare providers, the conspirators pocketed the insurance money for personal use. The scheme allowed them to rake in thousands, and in some instances, tens of thousands, of dollars based on lies. Brown herself admitted to participating in three fraudulent incidents, netting a total of $44,269. Goldman, involved in a single incident, walked away with $14,900.
Neither Brown nor Goldman used a single penny of their ill-gotten gains to pay for the medical bills associated with the false claims. Investigators from the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives uncovered the scheme, building a case that led to these guilty pleas. The investigation highlights a growing trend of insurance fraud impacting the financial stability of both insurance companies and healthcare systems.
Assistant U.S. Attorney Aaron M. Maness is prosecuting the case. Both Brown and Goldman now face up to 40 years in federal prison without the possibility of parole. While the maximum sentence is determined by Congress, the final decision rests with the judge, who will consider sentencing guidelines and other factors before handing down a punishment. A sentencing hearing will be scheduled following a presentence investigation conducted by the United States Probation Office.
This case serves as a stark reminder that insurance fraud is not a victimless crime. It drives up premiums for honest policyholders and drains resources from legitimate healthcare providers. The U.S. Attorney’s Office for the Western District of Missouri is committed to prosecuting these schemes to the fullest extent of the law, ensuring those who seek to profit from deception are held accountable.
Related Federal Cases
- Kalena Latoya Winston, Tax Return Fraud Scheme, Killeen TX, 2016 · Missouri
- Shawn Brown, Mail Fraud, MO 2017 · Nevada
- Albert Davis, Wire Fraud, Kansas City, MO, 2023 · Kansas
- Russell Hopkins, Securities Fraud Conspiracy, Kansas City MO, 2023 · Kansas
- Katherine Nicholle Brown, Embezzled $410,000, Jefferson City MO, 2012 · Illinois
Key Facts
- Agency: ATF
- Category: Fraud & Financial Crimes
- Source: Official Press Release
Get the grimiest stories delivered weekly. Subscribe free
Browse More
