Maryland Woman Scams USAA: A Maryland woman defrauded USAA Insurance out of $58,000 using fake invoices and internet photos. When she attempted a second scam for more than $124,000, investigators uncovered her scheme.
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 warning to those attempting insurance fraud. Insurers are increasing their fraud detection efforts, and individuals who submit false claims may face serious legal consequences.
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Read the full statement from the Maryland Attorney General’s Office here.