Former Service Representative Pleads Guilty To Social Security Fraud

     From a press release issued by Social Security's Office of Inspector General:

A former employee of the Social Security Administration (SSA) appeared in federal court in Dallas this morning and pleaded guilty ... to one count of conspiracy to commit theft of government funds. He faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. ...

In some instances, for example, [Carwin Shaw of Arlington, Texas, who was a Service Representative] manipulated the verified income attributed to Supplemental Security Income beneficiaries that resulted in the issuance of larger payments than authorized, the issuance of payments when none were due, and the removal of legitimate overpayments posted to beneficiary’s record. Shaw further admitted using the SSA’s electronic systems that interface with the U.S. Treasury Department to issue duplicate checks to beneficiaries when only one check was due. Shaw would cut additional checks to the co-conspirators by alleging their initial check had been lost or stolen, split the second check with the co-conspirator and then access the system and waive the overpayment so that it would not be recovered from any future benefits. Each co-conspirator was the representative payee for one minor or otherwise incompetent Social Security beneficiary.

The loss to the SSA as a result of all of Shaw’s relevant conduct is approximately $78,165. ...