Maryland Couple Sentenced for $20 Million Life Insurance Scam Involving Dozens of Fraudulent Policies

A Maryland couple has been sentenced to federal prison for running a multi-million-dollar insurance fraud scheme that targeted life insurance companies and investors. James William Wilson, Jr., 78, received a 12-year sentence, while his wife, Maureen Ann Wilson, 77, was sentenced to four years. The two defrauded insurers by securing over 40 fraudulent life insurance policies with total death benefits exceeding $20 million, using misrepresentations and forged documents.

James Wilson, a former licensed insurance broker, also misled individual investors to fund premium payments on these fraudulent policies. The couple used aliases, trusts, and multiple bank accounts to conceal the proceeds. They also filed false tax returns for 2018 and 2019, hiding over $7.7 million in illegally obtained income.

Maureen Wilson took an active role in impersonating others during calls with life insurers and helped orchestrate the laundering of funds. In addition to prison time, both were ordered to pay restitution of more than $18.7 million, and a forfeiture order was entered for over $14.8 million in seized funds.

The investigation, led by the IRS-Criminal Investigation Division, was supported by the Maryland Insurance Administration and the Maryland Office of the Attorney General. Prosecutors from the U.S. Attorney’s Office, the Department of Justice’s Tax Division, and the DOJ’s Money Laundering and Asset Recovery Section handled the case.