February 27, 2025 | JacobiJournal.com — A Maryland woman has been charged with insurance fraud after defrauding USAA Insurance out of $58,000 using fabricated invoices and photos sourced from the internet. The scheme involved falsely claiming water damage to her rented home and submitting altered receipts for furniture, electronics, and clothing. When she attempted a second fraudulent claim totaling more than $124,000, investigators grew suspicious, uncovering her repeated attempts to deceive the insurer. Authorities say this case highlights the serious legal consequences of submitting false insurance claims and serves as a warning to others considering similar actions.
First Fraudulent Claim: $58K Payout
In 2020, Rhonda K. Jackson, 39, of Upper Marlboro, also known as Rhonda Powell, filed a false insurance claim. She reported severe water damage from a broken pipe in her rented home, claiming losses on furniture, electronics, and clothing. As a result, USAA paid her $58,373.
However, she never informed her landlord about the supposed leaks. Moreover, the invoices and receipts she submitted were fabricated or altered. Despite this, USAA processed her claim without immediate suspicion.
Second Attempt: A $124K Mistake
Maryland Woman Scams USAA: In 2022, Jackson tried again, filing a new claim for $124,034. This time, USAA became suspicious and denied her request. Upon further review, they found that she had recycled fake documents and used photos from the internet to support her claim. Consequently, the insurer referred the case for investigation.
Investigation and Sentencing
After a thorough inquiry by the Maryland Attorney General’s Office, Insurance Administration Investigator Edward Spragg, and Forensic Auditor Suzzanne Jones, authorities charged Jackson with felony insurance fraud.
In October 2024, she pleaded guilty. Judge Lawrence Hill sentenced her to five years in prison, though he suspended all but 45 days. Additionally, she must repay $58,737 in restitution to USAA.
Key Takeaway: Fraud Doesn’t Pay
This case serves as a clear warning about the consequences of insurance fraud. Insurers are continually improving their detection systems, using advanced analytics, document verification, and investigative audits to identify false claims. Individuals who attempt to submit fraudulent claims risk criminal charges, substantial fines, restitution orders, and even prison time.
Beyond legal penalties, engaging in insurance fraud can severely damage personal and professional reputations, affect future insurance coverage, and create long-term financial consequences. For readers, this highlights the importance of understanding insurance policies, accurately reporting damages, and seeking guidance from legitimate sources when filing claims.
Read the full statement from the Maryland Attorney General’s Office here.
FAQs: About the Maryland Woman Insurance Fraud Case
What happened in this Maryland insurance fraud case?
Rhonda K. Jackson scammed USAA out of $58,000 using fake invoices and later attempted a second claim for over $124,000, which was uncovered by investigators.
How was the insurance fraud discovered?
Authorities found that Jackson had recycled fraudulent receipts and used photos from the internet to support her claims, prompting an investigation by the Maryland Attorney General’s Office.
What penalties did Jackson face?
She pleaded guilty in October 2024 and received a five-year sentence, with all but 45 days suspended, and is required to repay $58,737 in restitution.
Why is this case important?
The case illustrates how insurers are improving fraud detection and underscores the serious legal consequences for submitting false claims.
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