Social Security Fraud Prosecutions
Social Security Fraud – Overview
What Is Social Security Fraud?
Social Security fraud refers to any intentional act of deceit to receive Social Security benefits (e.g., retirement, disability, survivor, SSI) to which one is not lawfully entitled.
Types of Social Security Fraud:
Filing false claims for benefits.
Failing to report income or changes in eligibility.
Using someone else's Social Security number (SSN).
Continuing to collect benefits after the death of the recipient.
Disability fraud – claiming benefits while working or not disabled.
Relevant Federal Statutes:
18 U.S.C. § 1001 – False statements.
42 U.S.C. § 408(a) – Fraud in relation to Social Security.
18 U.S.C. § 641 – Theft of government funds.
18 U.S.C. § 1341 and § 1343 – Mail and wire fraud.
18 U.S.C. § 1028 – Identity theft and misuse of SSNs.
Elements Prosecutors Must Prove:
The defendant knowingly made a false statement or representation.
The false statement was material to obtaining Social Security benefits.
The defendant acted willfully and with intent to deceive.
Detailed Case Law
Case 1: United States v. Woodson (2011)
Facts:
Woodson continued to collect his deceased mother's Social Security benefits for over 10 years by forging her signature and hiding her death.
Charges:
Theft of government funds (18 U.S.C. § 641) and Social Security fraud (42 U.S.C. § 408(a)).
Outcome:
Convicted and sentenced to prison and ordered to pay over $150,000 in restitution.
Significance:
Highlights that fraudulently collecting benefits after someone’s death is a serious felony and subject to restitution and imprisonment.
Case 2: United States v. McLeod (2016)
Facts:
McLeod received Social Security Disability Insurance (SSDI) while operating a private business. He failed to report his income and work activity.
Charges:
False statements to the Social Security Administration (SSA) and theft of public funds.
Outcome:
Convicted; sentenced to 18 months in prison and ordered to repay over $100,000.
Significance:
Illustrates disability fraud through failure to report income, a common SSA fraud scenario.
Case 3: United States v. Demello (2018)
Facts:
Demello applied for Social Security benefits under two different names using false documents and SSNs.
Charges:
Aggravated identity theft (18 U.S.C. § 1028A), Social Security fraud, and false statements.
Outcome:
Convicted and sentenced to 5 years in prison.
Significance:
Shows how identity fraud to obtain benefits can lead to severe penalties, including mandatory minimum sentences under aggravated identity theft statutes.
Case 4: United States v. Watson (2020)
Facts:
Watson, an SSA employee, used access to agency systems to create false benefit claims and route funds to herself and accomplices.
Charges:
Wire fraud, identity theft, and conspiracy to defraud the government.
Outcome:
Convicted; sentenced to over 6 years in prison.
Significance:
Demonstrates that even internal SSA employees involved in fraudulent benefit schemes are aggressively prosecuted.
Case 5: United States v. Stanton (2014)
Facts:
Stanton failed to disclose a marriage and household income while receiving Supplemental Security Income (SSI), a needs-based benefit.
Charges:
False statements and concealment of material facts (42 U.S.C. § 408(a)).
Outcome:
Pled guilty; sentenced to probation and required to repay benefits received fraudulently.
Significance:
Reflects how failure to report changes in marital or financial status can be prosecuted as fraud.
Case 6: United States v. Reams (2019)
Facts:
Reams impersonated another individual and collected that person’s Social Security benefits for nearly 15 years.
Charges:
Identity theft, mail fraud, and theft of government property.
Outcome:
Sentenced to over 8 years in prison and restitution exceeding $200,000.
Significance:
Another example of long-term identity-based Social Security fraud, with stiff federal penalties.
Legal Takeaways from These Cases:
Intentional misrepresentation or omission to the SSA is a federal offense.
Failing to report income, marriage, or death can lead to felony charges.
Theft of government funds applies even to beneficiaries if benefits are improperly received.
Using false SSNs or identities to apply for benefits increases the severity (especially with identity theft charges).
Courts often order restitution in addition to imprisonment.
Conclusion
Social Security fraud is taken seriously by federal authorities, with enforcement often involving investigations by the Social Security Administration’s Office of the Inspector General (SSA-OIG). Prosecutors rely on false statements, theft, identity theft, and fraud statutes to ensure violators are held accountable. These cases show that fraud—whether by private individuals, government insiders, or third-p
RELATED Blog
0 comments