Maryland Woman Convicted in $20M Insurance Fraud & Money Laundering Scheme

A federal jury has convicted Maureen Wilson, a resident of Owings Mills, Maryland, for her role in an extensive insurance fraud scheme involving over $20 million in fraudulent life insurance policies. The conviction includes charges of conspiracy to commit mail and wire fraud, wire fraud, mail fraud, money laundering, and filing false tax returns.

Fraudulent Insurance Policies &Investor Scams

According to court documents and evidence presented at trial, Wilson, alongside her husband James Wilson, orchestrated a complex fraud scheme by securing more than 40 life insurance policies under false pretenses. The couple misrepresented applicants’ financial status, health conditions, and existing insurance coverage to obtain policies with significant death benefits.

Additionally, Wilson defrauded individual investors by soliciting funds under false pretenses, using the money to cover premiums on the fraudulent insurance policies.

Money Laundering & Tax Evasion

To evade detection, Wilson and her husband laundered proceeds through multiple bank accounts, including those held in the name of trusts. Furthermore, Wilson concealed her illicit earnings from tax authorities by filing false income tax returns for 2018 and 2019. She failed to report approximately $5.7 million and $2 million in income for those years, respectively.

Conviction & Potential Sentencing

Wilson was found guilty on multiple counts, including:

• Conspiracy to commit mail and wire fraud (1 count)

• Mail fraud (4 counts)

• Wire fraud (2 counts)

• Conspiracy to commit money laundering (1 count)

• Money laundering (1 count)

• Filing false tax returns (2 counts)

She was acquitted of one count of mail fraud.

Wilson faces severe legal consequences, with a potential maximum sentence of 20 years for each count of conspiracy, wire fraud, mail fraud, and money laundering. Each count of filing a false tax return carries a maximum penalty of three years in prison. A federal district court judge will determine the final sentence, considering the US Sentencing Guidelines and other legal factors. Sentencing is scheduled for 20 June 2025.

Investigation & Prosecution

The case was investigated by IRS Criminal Investigation, with support from the Maryland Insurance Administration and the Maryland Office of the Attorney General. The prosecution was led by Trial Attorneys Shawn Noud and Richard Kelley from the Justice Department’s Tax Division, alongside Assistant US Attorneys Matthew Phelps and Philip Motsay for the District of Maryland.

Acting Deputy Assistant Attorney General Karen E. Kelly, US Attorney Kelly O. Hayes for the District of Maryland, and Special Agent in Charge Kareem A. Carter of IRS Criminal Investigation’s Washington, DC Field Office announced the conviction.

This case underscores the commitment of federal agencies to combat financial fraud, ensuring accountability for individuals who exploit the insurance system for personal gain.

Read the press release here.