Missouri Residents Plead Guilty to $1.2 Million Insurance Fraud Conspiracy
Published Feb. 20, 2023
Two Columbia, MO, residents pleaded guilty in federal court Feb. 14 to their roles in a $1.2 million insurance fraud conspiracy that involved false claims of injuries suffered in car accidents.
Latoya Marie Brown, 37, who also lived in the Kansas City, MO, area, and Cedrick Shawndale Goldman, 46, each pleaded guilty in separate appearances before U.S. Magistrate Judge Willie J. Epp Jr. to one count of conspiracy to commit wire fraud and one count of conspiracy to commit mail fraud.
By pleading guilty, Brown and Goldman admitted they were part of a conspiracy that defrauded six insurance companies of a total of $1,234,581 from June 2017 to July 2020.
Conspirators submitted false claims that they had suffered bodily injuries and they would be personally liable for any medical bills related to insurance claims. Conspirators, some of whom were involved in multiple incidents, received thousands of dollars, and in some cases tens of thousands of dollars, based on these false claims. However, none of the conspirators made any payments to medical providers and instead used the funds for their personal expenses.
Brown admitted she was involved in three incidents and received a total of $44,269 in insurance payments. Goldman admitted he was involved in one incident and received a $14,900 insurance payment. Neither Brown nor Goldman have paid any of their hospital or medical bills with the insurance proceeds they received.
Under federal statutes, Brown and Goldman each are subject to a sentence of up to 40 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Source: The U.S. Attorney's Office Western District of Missouri