Detroit Couple to Face Trial over Alleged $150K Disability Insurance Fraud Scheme

A Detroit couple accused of orchestrating a disability insurance fraud scheme totaling $150,000 has been ordered to stand trial in Michigan. The pair is facing multiple felony charges after allegedly submitting false claims over several years, collecting tens of thousands of dollars in fraudulent disability payouts.

According to the Michigan Attorney General’s Office, the fraudulent activity spanned from 2016 to 2022 and involved false disability claims with at least two insurance carriers. Investigators allege the defendants claimed to be disabled from employment at a group home that reportedly did not exist. Despite these claims, one of the accused was allegedly still working while collecting insurance benefits.

Charges include conducting a criminal enterprise, obtaining funds under false pretenses, fraudulent insurance acts, and tax-related offenses. The defendants were initially arraigned in March and are scheduled for arraignment in Wayne County Circuit Court on September 9. If convicted, they face significant prison time, with the most serious charge carrying a 20-year sentence.

Officials from the Michigan Department of Insurance and Financial Services (DIFS) emphasized the broader impact of insurance fraud, noting that such crimes drive up costs for all consumers. The Michigan Attorney General reiterated the commitment to aggressively pursuing insurance fraud to protect both insurers and policyholders.