Life insurance fraud case in Louisiana exposes deadly family affair

This is a story about a brother-sister duo who had their cousin killed for life insurance money.

This is a story about revenge. About deceit. About arson. About one ex-lover who testified against the other.

This is a story that concluded in a New Orleans courtroom following a seven-day trial where the ringleader was convicted, and now faces 260 years in prison and $3.75 million in fines.

At the heart of this story are Louisiana siblings David and Maria Samuels. In July 2003, according to a federal indictment, David Samuels plotted to take out two life insurance policies on their cousin, Treyor August. Apparently, August had stolen drug money from Maria Samuels’ drug-dealing boyfriend, Jermaine Surtain. Surtain, who fathered a child with Maria Samuels, wanted his comeuppance.

So David and Maria Samuels and their mother, Theresa Samuels, teamed up with Stefan James, 38, a licensed insurance agent who sold policies for AIG and BaltLife. With James’ help, the Samuelses took out a $75,000 AIG policy and a $25,000 BaltLife life policy on August – without August’s knowledge – and named themselves as beneficiaries.

Assistant U.S. Attorney Billy McSherry told the New Orleans Times-Picayune: “David Samuels is one that can never pass up an insurance deal. What David believed is that everyone had a price.”

The plot thickens

When it was time to collect on the policies, David Samuels tried on two occasions to recruit people to kill August. Those two prospective recruits refused. Finally, David Samuels told Surtain he’d give him money from the life insurance policies if Surtain would kill August.

Surtain, 32, agreed; Samuels recruited his old Army buddy, 36-year-old Charles Moss, to help. On April 24, 2004, Surtain and Moss told August they wanted to take him out on the town to celebrate his birthday, which was the next day. Instead, Moss and Surtain drove August in David Samuels’ Chrysler van. Surtain shot August several times, pushed August to the ground, then shot August once more in the head. August died. To provide an alibi, Samuels was not in the van at the time, according to the indictment.

A life insurance scheme in Louisiana left one person dead and several people facing time behind bars.

On April 30, 2004, Samuels obtained an auto insurance policy on the Chrysler van from GEICO. On the night of May 7, 2004, two masked men burned David Samuels’ van. The following morning, Samuels filed a claim with GEICO for the fire loss. About a month later, GEICO mailed Samuels a $4,095 check. Authorities later determined that Samuels and Surtain torched Samuels’ van to destroy any evidence that could connect the vehicle to the August murder.

Authorities also learned that Samuels and Surtain exchanged numerous phone calls in the moments leading up to the murder of August and the burning of Samuels’ van.

Although Samuels received the auto insurance money on his burned van, he and his crew never received the life insurance money for the death of August. AIG denied the life insurance claim because it discovered false information on the initial life insurance application for August; the source of the false information was not revealed in court documents. BaltLife denied the life insurance claim because the Samuelses provided incomplete information about August’s medical history.

Sibling rivalry

The case against Samuels and company began picking up steam after a separate criminal case. According to the New Orleans Times-Picayune, Surtain and Kelvin Marshall were charged in 2007 with stealing more than 120 guns and more than $64,000 from a sporting goods store in nearby Metairie. Marshall tried to cut a deal by telling authorities that he knew about the murder of August and that he provided the bullets Surtain used in the murder of August.

As prosecutors built their case, Maria Samuels reached a plea deal with the federal government. She told authorities that she took out life insurance on August with the help of James, the crooked insurance agent. Maria Samuels also admitted that her brother tapped Surtain – her ex-boyfriend – to kill their cousin. Maria Samuels pleaded guilty to one count of conspiracy to commit mail and wire fraud; she faces a five-year prison sentence.

James and another insurance professional, 43-year-old Damian Landry, also cooperated with the government and pleaded guilty in the scheme.

David Samuels; Moss, the Army buddy; and Surtain, who already was serving a 15-year sentence for the gun heist, all were found guilty of numerous charges of conspiracy to commit mail and wire fraud, arson and murder. David Samuels, 44, also was convicted in a 2002 arson case aimed at collecting on a homeowner’s insurance policy.

Sentencing of everyone involved in this scheme is scheduled for April and May, according to court documents. Ages weren’t available for Maria Samuels and August.

As for Theresa Samuels, the mother of David and Maria, she won’t be serving any time in prison. She died before the case went to trial.

–Kevin Lyons