BY ELAINE VAN DEVELDE
Staff Writer
TINTON FALLS — A borough man who faked his own drowning couldn’t get rescued from a prison sentence.
Nearly two years after 31-year-old Derek Nicholson — aka Jacob Milsner, aka Michael Way — faked his own drowning off a Long Branch beach, he is sitting in jail on a 60-month prison sentence for his part in what authorities have deemed an insurance fraud scheme.
According to officials at the federal Department of Justice, Nicholson stood trial and was found guilty of conspiracy and false distress for his part in a fraud scheme perpetrated two years ago with his wife, Nikole Nagle, 26.
In addition to being ordered by U.S. District Court Judge Garrett E. Brown Jr. to serve the five-year prison sentence, Nicholson was also assessed $5,000 in fines and a $24,945 restitution for the crimes, which has been paid, Assistant U.S. Attorney Hope Olds said.
And once Nicholson has served his sentence, Olds said he will also be ordered to serve three years of supervised release.
“Parole has been abolished in the federal system,” Olds said.
Nicholson faked his drowning in Long Branch and disappeared on July 26, 2003, while Nagle attempted to collect on a $1 million insurance policy taken out on him a month before. Nagle was found guilty of insurance fraud conspiracy and false distress and sentenced to a heftier 15 years in prison and fines a few weeks ago in connection with the fraud scheme.
“The evidence,” Olds said, “showed that Nicholson first applied for a $3 million State Farm Life Insurance policy on June 11, 2003. He named Nagle the beneficiary of the policy.”
On July 24, records showed that State Farm issued not a $3 million, but a $1 million policy, Olds said.
Two days later, on July 26 while the two were at a beach in Long Branch, Nagle falsely reported to lifeguards and police that her husband had gone missing after heading into the ocean for a swim.
As police searched for the possible drowning victim, Olds said the evidence eventually showed that he was on a train to California under an assumed name, Anthony Jackson.
According to the evidence, Olds said that Nicholson had bought and used prepaid cell phones under the aliases of Jacob Milsner and Michael Way right after the $1 million policy was sanctioned on paper by State Farm.
The cell phone under the Milsner name was used to book the train ride.
On Aug. 1, Nagle filed a claim to try to collect the $1 million, but the insurance company would not issue the money without a body, Olds said.
The next day, records showed that Nicholson, using the Milsner cell phone, called Sea Bright police to report that a body matching his description was sighted in the ocean.
The two were arrested on May 12, 2004.