United States District Judge Thomas O. Rice sentenced William Oldham Mize to 144 months in federal prison in connection to a multimillion-dollar fraud scheme involving false and fabricated insurance claims. Judge Rice also imposed 3 years of supervised release and $6,657,209 in restitution to insurance companies and $436,399 in restitution to the IRS. The ringleader, William Oldham Mize, spent nearly five years evading authorities after his initial arrest, according to U.S. Attorney’s Office, Eastern District of Washington.
From 2013 to 2018, Mize directed a group that staged fake automobile, boat, and in-home accidents in Washington and Nevada. The scheme generated over $6 mn in fraudulent payouts, with Mize pocketing a significant share.
He pleaded guilty to the charges in August 2024, according to the U.S. Attorney’s Office for the Eastern District of Washington.
Mize was ordered to pay $6.7 mn in restitution to insurance companies and will be subject to three years of supervised release after his prison term. In addition to insurance fraud, he was convicted of tax evasion, having avoided more than $400,000 in tax liabilities. The court ordered him to pay $436,399 to the IRS.
“For many years Mr. Mize recruited, directed, and elaborately staged automobile and boat collisions as well as other injury accidents to fraudulently obtain millions of dollars. Not only did this scheme cause serious physical harm to his co-conspirators, including his wife and children, but it placed the community in significant danger. Furthermore, Mr. Mize defrauded the public out of more than $400,000 by cheating on his taxes. When indicted by prosecutors in my office, Mr. Mize fled, to avoid accountability for his crimes,” stated U.S. Attorney Vanessa Waldref. “I am grateful for the dedication of the U.S. Marshals who located and returned Mr. Mize to the Eastern District and prosecutors and investigators who worked many hours over the years to achieve justice in this case.”
U.S. Attorney Vanessa Waldref highlighted the dangers of Mize’s fraudulent activities. She stated that Mize “recruited, directed, and elaborately staged” various accidents, including vehicle collisions and other injury-related incidents, to collect large insurance payouts. His actions caused physical harm to his co-conspirators, including his own family members, and endangered public safety.
One of the staged incidents occurred in February 2016. Mize and three others claimed they were carrying a copy machine down a residential staircase when a cat caused them to fall, resulting in severe injuries. The scheme led to an $85,000 payout, as detailed in the plea agreement.
Mize was first arrested in 2019 but fled while awaiting trial. In November 2023, authorities tracked him to Florida, where he was living on a yacht he was attempting to sell.
Craig Thayer, U.S. Marshal for the Eastern District of Washington, stated that Mize’s elaborate fraud schemes not only hurt insurers financially but also increased insurance costs for policyholders.
“I want to commend and express special thanks for the exceptional investigative work done by the talented agents and investigative professionals with the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Marshals Service. Their close collaboration and partnership, and their persistence and hard work throughout a complex and lengthy investigation, are what made this result possible. We look forward to continuing to work with our law enforcement partners to strengthen and safeguard Eastern Washington,” said Assistant United States Attorney Dan Fruchter.
“Mr. Mize spent years living off the misery he caused.” said Gregory L. Austin, Acting Special Agent in Charge of the FBI’s Seattle field office.
While he enriched himself, his co-conspirators, which included family members, were left with physical injuries and jail sentences. To make matters worse, rather than answer for his crimes, he became a fugitive for almost five years. I would like to commend our investigators, partners, and specifically the US Marshals Service, who ultimately tracked him down and took him into custody.
“Mr. Mize endangered his family and the public for money,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “As long as money is a motivation for crime, we will assist our law enforcement partners with investigations like this one.”
“The elaborate fraud schemes that William Mize orchestrated not only caused financial injury to various insurance companies, but these crimes add to the cost for responsible citizens to have insurance. It should also not be forgotten that the collisions, and physical injuries to those participating in the schemes, were acts of unconscionable violence and added risk to the public. Mize fled after his original appearance in federal court, which led to a long and protracted fugitive investigation,” said Craig Thayer, United States Marshal for the Eastern District of Washington.
“The partnership and teamwork between local, state, and federal agencies including the IRS and FBI was instrumental in the eventual arrest of Mize. Judge Rice has now made Mize accountable with today’s sentence and order for restitution.”
The FBI, Internal Revenue Service, and U.S. Marshals Service investigated this case. Assistant United States Attorneys Dan Fruchter, Jeremy J. Kelley, and Brian M. Donovan prosecuted the case on behalf of the United States.
