OWINGS MILLS, Md. — A Maryland husband and wife were sentenced Tuesday to federal prison for their roles in a $20 million life insurance fraud and tax evasion scheme, prosecutors announced.

James Wilson received 12 years, and Maureen Wilson was sentenced to four years, following their convictions for conspiring to defraud insurance companies and investors by falsifying information in more than 40 life insurance applications.

Court documents revealed the Wilsons submitted policies with misrepresentations about the applicants’ health, financial status, and insurance history. The fraudulent policies carried death benefits totaling over $20 million. They also misled investors into providing funds, which were used to pay premiums on the illicitly obtained policies.

To hide their proceeds, the Wilsons transferred the money through numerous bank accounts, including ones held in the names of trusts. Prosecutors said they also filed false tax returns, failing to report $5.7 million in income in 2018 and $2 million in 2019.

U.S. District Judge Deborah K. Chasanow ordered both defendants to serve three years of supervised release and pay approximately $16 million in restitution to fraud victims and $2.7 million to the United States. The court also ordered forfeiture of $14.8 million in seized assets.

The case was investigated by IRS Criminal Investigation with assistance from the Maryland Insurance Administration and the Maryland Attorney General’s Office.

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