Maryland Ex-Officers Plead Guilty in Auto-Insurance Fraud Scheme

Two former Maryland police officers, Michael Anthony Owen, Jr. and Jaron Earl Taylor, have pleaded guilty to federal charges related to an auto-insurance fraud scheme that operated between August 2018 and February 2020.

The scheme involved falsifying police reports and staging vehicle thefts to mislead insurance companies into paying out on fraudulent claims. Utilizing their law enforcement positions, the conspirators created false documentation to support their claims, impeding investigations and enabling illicit insurance payments.

One incident involved the staged theft of a Chevrolet Tahoe, resulting in a payout of $38,670 from USAA. Another involved a Jaguar XKR, with fraudulent claims paid to cover the loan balance by Liberty Mutual insurance, totaling $17,585.

A third case included the staged theft of an Infiniti sedan to avoid vehicle payments, though the insurance claim was later denied due to fraud detection. The involvement of multiple individuals, including fellow officers and external participants, underscores the coordinated nature of the fraud. These cases highlight challenges in insurance fraud detection, particularly when insiders with authority manipulate evidence.

Sentencing for Owen could reach up to 20 years in federal prison, while Taylor faces a maximum sentence of three years if the plea agreement is upheld. This case underscores the need for rigorous claim verification processes, especially when law enforcement officials are involved, and has broader implications for insurer risk management and fraud prevention strategies within the auto insurance sector.