Maryland Life Insurance Broker Convicted in $20 Million Fraud Scheme

A Maryland life insurance broker has been convicted of orchestrating a $20 million fraud scheme involving fraudulent policies and investor deception. James William Wilson, Jr., 77, of Owings Mills, was found guilty by a federal jury on 13 counts of fraud, three counts of money laundering, two counts of filing false tax returns, and one count of aggravated identity theft following a seven-day trial in Baltimore.

Court records and trial evidence revealed that Wilson secured over 40 life insurance policies through fraudulent means, misrepresenting applicants’ health, financial status, and existing coverage. The policies had total death benefits exceeding $20 million. He also deceived investors into providing funds to cover the premiums on these fraudulent policies. To conceal his scheme, Wilson moved the illicit proceeds through various bank accounts, including those held in the names of trusts. Additionally, he filed false tax returns in 2018 and 2019, failing to report approximately $5.7 million and $2 million in fraudulent income, respectively.

Wilson faces a maximum sentence of 20 years in prison for each count of conspiracy, wire fraud, mail fraud, and money laundering. He also faces three years for each false tax return count and an additional two years for aggravated identity theft. His sentencing is scheduled for May 1, 2025. Meanwhile, his wife, Maureen Wilson, 76, has also been charged with similar offenses, including fraud, conspiracy, and money laundering. Her trial is set for March 3, 2025.

The case was investigated by the IRS-Criminal Investigation Division, with support from the Maryland Insurance Administration and the Maryland Attorney General’s Office. The prosecution was led by Assistant U.S. Attorneys Matthew P. Phelps and Philip Motsay, along with Justice Department trial attorneys Shawn Noud and Richard Kelley.

Article by multiple RFHC contributors.

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