Life insurance fraud cases that result in criminal convictions are rare, but when they occur, they tend to involve extreme facts and long investigations. These cases help explain why insurers scrutinize certain claims and why courts enforce doctrines such as fraud in the inducement, lack of insurable interest, and the slayer rule.
The examples below are not typical denied claims. They are well documented criminal cases where courts found intentional wrongdoing and permanently barred any insurance recovery.
Notable Life Insurance Fraud Cases and Legal Outcomes
1. Jose Lantigua
Overview:
Lantigua staged his death overseas and falsely claimed to have died from a rare disease. Insurance proceeds totaling approximately $9 million were paid before the fraud was uncovered.
Legal Outcome:
He was arrested after attempting to obtain a passport under a false identity and later pleaded guilty to fraud related charges.
Why the Claim Failed:
Fraud voids coverage entirely, even after benefits have been paid.
2. Joe Caronna
Overview:
Caronna murdered his wife and attempted to collect proceeds from her life insurance policy.
Legal Outcome:
He pleaded guilty to second degree murder and was sentenced to decades in prison.
Why the Claim Failed:
The slayer rule barred any recovery tied to his actions.
3. Michael Marin
Overview:
Marin intentionally set fire to his home and attempted to collect insurance proceeds by claiming an accidental loss.
Legal Outcome:
He was convicted of arson. After the verdict was announced, he died in court.
Why the Claim Failed:
Intentional destruction of insured property constitutes fraud.
4. Clayton Daniels and Molly Daniels
Overview:
The couple staged Clayton’s death using a burned body and attempted to collect life insurance benefits.
Legal Outcome:
DNA evidence exposed the fraud, leading to convictions and prison sentences.
Why the Claim Failed:
Insurers require proof of death and identity. Fraudulent substitution voids coverage.
5. Tex McIver
Overview:
McIver killed his wife and claimed the shooting was accidental. Prosecutors argued financial motive tied to estate and insurance benefits.
Legal Outcome:
He was convicted of felony murder and sentenced to life in prison.
Why the Claim Failed:
Intentional killing disqualifies the beneficiary and bars recovery.
6. Rudy Kurniawan
Overview:
Kurniawan falsely claimed death and collected insurance proceeds before resurfacing under a new identity.
Legal Outcome:
He was convicted of multiple fraud offenses and ordered to pay restitution.
Why the Claim Failed:
False death claims constitute insurance fraud from inception.
7. Molly Martens Corbett and Thomas Martens
Overview:
They killed Jason Corbett and attempted to justify the death while seeking financial benefit.
Legal Outcome:
Both were convicted of second degree murder.
Why the Claim Failed:
Participation in homicide disqualifies any associated insurance recovery.
8. Brenda Andrew
Overview:
Andrew conspired with a partner to murder her husband and stage a robbery to collect insurance proceeds.
Legal Outcome:
She was convicted of first degree murder.
Why the Claim Failed:
Courts bar beneficiaries who orchestrate or participate in murder.
9. Helen Golay and Olga Rutterschmidt
Overview:
They obtained policies on vulnerable individuals and killed them to collect benefits.
Legal Outcome:
Both were convicted and sentenced to life in prison.
Why the Claim Failed:
Lack of legitimate insurable interest and intentional homicide voided all claims.
10. Michele Williams
Overview:
Williams killed her husband and gave multiple false explanations to collect insurance proceeds.
Legal Outcome:
She was convicted after forensic evidence contradicted her claims.
Why the Claim Failed:
False statements and intentional killing barred recovery.
11. Rakesh Bhayani and Nicholas Kutner
Overview:
They murdered a wealthy businesswoman and attempted to access insurance benefits along with other assets.
Legal Outcome:
Both were convicted of murder and fraud.
Why the Claim Failed:
Criminal conduct tied to the insured’s death permanently disqualified recovery.
Legal Doctrines Illustrated by These Cases
These cases exist at the extreme end of life insurance litigation, but they explain why insurers and courts enforce strict rules:
• Fraud voids policies retroactively
• Murderers and accomplices cannot collect benefits
• Insurable interest must be legitimate
• Proof of death must be reliable
• Public policy overrides contractual language
These doctrines protect the integrity of the insurance system.
How These Cases Differ From Ordinary Denied Claims
Most denied life insurance claims do not involve criminal conduct. Routine denials usually center on:
• Misrepresentation disputes
• Beneficiary designation conflicts
• Policy lapse arguments
• Exclusion interpretation
The cases above are outliers and should not be confused with standard claim disputes.
Frequently Asked Questions
Does fraud automatically void a life insurance policy
Yes. Proven fraud typically voids coverage from the beginning.
What is the slayer rule
It prevents anyone who intentionally causes the insured’s death from receiving insurance proceeds.
Can insurers deny claims without a criminal conviction
Sometimes, but criminal convictions make denial much easier to enforce.
Are innocent beneficiaries protected
Often yes, unless separate policy defenses apply.
Should unusual denials be reviewed carefully
Yes. Insurers sometimes cite fraud cases even when facts do not support it.