Churchville Woman Indicted for Insurance Fraud - Harford County

BALTIMORE, MD ( October 22, 2009) - Attorney General Douglas F. Gansler announced today that Churchville resident Gwendolyn Austin, 47, was indicted in the Circuit Court for Harford County for insurance fraud and felony theft.

The charges allege that from October 2006 through April 2007, Austin fraudulently prepared, signed and submitted applications for life insurance on behalf of seven people. Austin used the names of real people, but did not use their real addresses. None of the seven had sought any insurance coverage through Austin. Austin collected about $4,400 in commission money on the seven fraudulent policies. No trial date has been set.

Felony theft is punishable by a maximum sentence of 15 years incarceration and a $25,000 fine. Felony insurance fraud is punishable by a maximum sentence of 15 years incarceration and a $10,000 fine.

The indictment follows a joint investigation by the Insurance Fraud Division of the Maryland Insurance Administration, the Maryland State Police and the Office of the Attorney General. In making today’s announcement, Attorney General Gansler thanked Assistant Attorney General Benjamin Harris and Maryland State Trooper Mujaihid Jones for their work on the case. A criminal charge is merely an accusation of wrongdoing and the defendant is presumed innocent unless the State proves guilt beyond a reasonable doubt.