A court has sentenced Peth resident Karen Maree Salkilld to three years in prison after she admitted to faking her death to fraudulently claim an $718,000 life insurance payout.
According to an ABC report, Salkilld, 43, had pleaded guilty to charges of obtaining a benefit by deception and knowingly using falsified documents.
In her scheme, Salkilld provided insurance company Insuranceline with falsified records, including a death certificate, funeral documents, and a purported letter from the coroner. These submissions claimed she had died in a car accident in Broome in December 2023. The payout was processed on Feb. 14, 2024, shortly after her claim was submitted in late January.
Judge Vicki Stewart, who presided over the sentencing, remarked that the offence was premeditated, noting that Salkilld had planned and executed the fraud for several months before her arrest in March.
Salkilld’s financial situation, including debts, appeared to be a motivating factor in the scheme, according to court statements.
Salkilld had opened a bank account in her former partner’s name, listing herself as the beneficiary and using that account to receive the insurance payment. Her former partner, however, was not implicated in the crime and was unaware of Salkilld’s actions.
Stewart said that the seriousness of the offence ruled out a suspended sentence, given the deliberate approach taken by Salkilld.
The court learned that, prior to her arrest, Salkilld attempted to transfer funds from the MyState Bank account she had created under her ex-partner's identity. She reportedly used doctored identification, modifying her former partner’s driver’s license and passport by replacing the photo with her own.
Her ongoing efforts to access the funds, including multiple verification attempts at a police station, ultimately led to her arrest.
The prosecutor, Emily Roberts, described Salkilld’s scheme as “planned and relatively sophisticated.” She emphasised that the fraud affected multiple parties, including Insuranceline, MyState Bank, law enforcement, and her former partner, who was unknowingly drawn into the scheme.
During sentencing, Stewart acknowledged the broader impact of the case, stating that such fraud cases could indirectly increase premiums for other policyholders.
The court also learned that Salkilld’s scheme may have been influenced by a film, though her lawyer, Max Crispe, did not specify the title.
Additionally, Salkilld had previously received a life insurance payout of $500,000 following the death of another former partner in 2018.
Stewart further ordered the return of the $718,000 to Insuranceline.
Salkilld’s case underscores broader issues in the global insurance sector, where fraud remains a persistent concern.
RGA’s 2024 Global Claims Fraud Survey involved life and health insurance professionals, revealing that 74% of respondents saw either a steady or rising number of fraud cases.
The survey identified three main categories of fraud affecting insurers:
Consumers were found to be the primary culprits in fraudulent activities, according to 72% of survey participants. Common methods included document falsification, non-disclosure, and misrepresentation.
