46 Months For Former Social Security Employee

     From Social Security's Office of Inspector General:

Sharon Ramos, age 56, of South Bend, Indiana was sentenced before District Court Judge Jon E. DeGuilio for ten counts of making false entries in government records, two counts of conversion of government money, and one count of wire fraud, announced U.S. Attorney Thomas L. Kirsch II.

Ramos, convicted after a four-day jury trial in November 2017, was sentenced to 46 months’ imprisonment and ordered to pay restitution to the Social Security Administration in the amount of $550,383.66.

According to testimony during the trial, from approximately January 2008 and continuing until around December 2013, Ramos devised a scheme to defraud the Social Security Administration by means of materially false and fraudulent pretenses, representations, and promises.  Ramos, then an employee of the Social Security Administration, made numerous false and fictitious representations in Supplemental Security Income (SSI) accounts of numerous SSI claimants.  These improper entries in the accounts resulted in numerous SSI claimants obtaining payments they were not eligible to receive.  As a result, Ramos fraudulently converted money belonging to the Social Security Administration. ...

Should He Have Been Arrested?

     From the Journal News:(which is apparently somewhere in Pennsylvania although their website either doesn't give that information or hides it):

Middletown police responded to the report of a man saying “you’re all going to die” at the Social Security Administration office in Franklin on Monday, but the man later said he actually just meant they were “going to hell.”

The incident happened Monday morning ... according to a Middletown police report. The man, who was not arrested or charged, was upset for procedures he did not get done, and a security officer reported that the man said, “you’re all going to die” as he was leaving. ...

     Update: I'm told that this Middletown is in Ohio, not Pennsylvania.

Quite Rare?

     From the Cleveland Plain Dealer:

Q: Last month I received a letter from Social Security telling me how to access the online account I had just established. The letter also told me to dial an 800 number or visit a Social Security office if I had not opened such an account. Two days later I received a second letter about my change of address request.

I had done neither of these, so I went to the Akron Social Security office. The people there were friendly and professional. They deleted the online account and disallowed the change to a San Diego address. They also told me that my direct-deposit bank information had not been compromised.

I asked whether it would be a good idea to open a legitimate online account and they helped me do so.

Two things they were vague about: How did the scammer get my information and what could he or she accomplish with the bogus account. They also were unsure as to whether Social Security Administration would pursue this matter further.

The 800 number in the letter is answered by a robot receptionist and it could not respond to my statement, "I did not open an online account." This motivated me to drive to Akron.

D.S., Hudson

A: It's a good thing --  a really good thing -- you didn't ignore that letter. I talked to the Social Security Administration about your problem. They said that, fortunately, near disasters like what you encountered don't happen often.
"Our anti-fraud activities identify attempts and make the type of activity you are asking about very rare," said Doug Nguyen, regional spokesman for the Social Security Administration. "The agency employs a multi-faceted approach towards fraud prevention and regularly performs data analytics against (legitimate) transactions to identify anomalous activity and take action." ...

Social Security Field Office Closed By Anthrax Hoax

     From the Leesburg, Florida Daily Commercial:

Police and firefighters converged on two Lake County offices Wednesday to investigate suspicious packages, although one quickly proved to be a hoax.

Members of Lake County’s Hazardous Materials unit responded to the Lake Emergency Medical Services office on Old U.S. Highway 441 in Mount Dora early Wednesday afternoon after a “white powdery substance” arrived there by mail, according to City of Mount Dora spokeswoman Lisa McDonald. ...

12 employees who came in contact with the letter were temporarily quarantined while the Hazmat team tested the substance, but the team soon determined the substance was not hazardous.

At the same time, the Social Security Administration building in Leesburg was temporarily closed after employees received another suspicious package. Leesburg police did not immediately know what kind of package it was or how it arrived but said they were waiting for the Hazmat team to finish in Mount Dora and come investigate the suspicious substance there.

The scares were the latest in a series of such hoaxes dating back to last year.

Early in 2017, the Daily Commercial received a letter that threatened the life of President Donald Trump, and another mailed to the paper in December contained white powder inside a folded piece of looseleaf paper with the word ANTHRAX written across it. Lake County Fire Rescue’s hazardous materials team responded to the newspaper and determined that the substance was baking powder.

Then on Jan. 29, three letters — presumably from the same person — arrived at three locations in Leesburg: the Daily Commercial, Bank of America on North 14th Street and Florida Heart & Vascular Center on Dixie Highway, across from Leesburg Regional Medical Center. It was the second time the bank had received one of the letters.

No harmful substances were in those letters.

Are We Sure That Online Filing Is A Good Thing?

     From the Detroit Free Press:

Tim Sagert has been enduring the pain of a double-whammy of identity theft.

First, a crook used his stolen ID to claim Social Security benefits last spring. Then this tax season, Sagert was hit with an SSA-1099 tax form for reporting the income paid to the crook.  ...

The Equifax data breach, first disclosed in September — which some dub as the most destructive data breach recorded —  compromised the personal information of nearly 146 million consumers, including some Social Security data. 

Many consumers wondered  whether someone would open a credit card in their name or file a fake tax return to generate a fraudulent refund using their stolen Social Security numbers.

Few imagined that hackers would try to make bogus claims for Social Security benefits.

But consumers who are in their 60s who have not claimed benefits yet could be at risk for headaches involving fraudulent Social Security retirement claims. ...

Social Security after full retirement age is eligible for up to six months of retroactive benefits, payable in a lump sum. If you accept that lump sum, your monthly benefit is smaller.

For the cyber crooks, the payout is huge if they  use the ID of someone in that age range who isn't already collecting benefits. ...

     I'm going to take a guess that the Social Security Administration would prefer that this not be reported. They wouldn't want their vulnerability to be better known.

No Prosecution For Alleged Rep Payee Fraud

     A Richmond television station is reporting that the U.S. Attorney's Office for the Eastern District of Virginia has declined to prosecute in the case of an institutional Social Security representative payee who is alleged to have taken money from 300 mentally disabled people. The business in question is closed and the beneficiaries involved all have new representative payees but no one seems to know where the money went.

Man Indicted For Assault At Social Security Office

     From WHNS in Greenville, SC:

A 63-year-old was indicted by a grand jury after an assault at the Social Security Office in Greenville.

Kenneth David Sipple of Travelers Rest is charged with assaulting a federal employee in November.

According to the indictment filed on Wednesday, the victim, a contract employee of the Department of Homeland Security, was working as a guard at the office when Sipple struck him with "both open and closed hands."

The suspect is also accused of wrestling the guard, trying to take his firearm and then stabbing him in the earlobe with a ballpoint pen. ...

Eric Conn Disbarred

     Not that it really matters, but Eric Conn has officially been disbarred.

A Real Winner In Charlotte

     From the Charlotte Observer:

Oliver Montgomery’s job was to help clients get their Social Security payments.

Instead, he stole them, a new court document said Tuesday – more than $37,000 in all. ...

Read more here: http://www.charlotteobserver.com/news/local/crime/article196260704.html#storylink=cpyHe allegedly committed the crimes while on the taxpayers’ dole: Montgomery worked as a service representative in the Charlotte office of the Social Security Administration, the affidavit says.

Read more here: http://www.charlotteobserver.com/news/local/crime/article196260704.html#storylink=cpy

He allegedly committed the crimes while on the taxpayers’ dole: Montgomery worked as a service representative in the Charlotte office of the Social Security Administration ...

Montgomery’s scheme covered a 12-month period that ended August, during which he allegedly diverted tens of thousands of dollars from two Social Security beneficiaries, the affidavit says.

In one of the cases, Montgomery actually assisted his own investigation.

After threatening an ex-girlfriend who planned to take him to court over a previous debt, Montgomery shot her a text message with a selfie he’d taken at the Social Security office. In the photograph, Montgomery posed with a large amount of cash, the affidavit says.

“Show them that stack on my desk,” he told the former girlfriend in the text.

Instead, she eventually shared the text with federal officials, the affidavit says. ...

     Note to the reporter who wrote this: Being a federal employee doesn't mean that you're "on the taxpayers' dole." That's an insult to the vast majority of government employees who perform their work honorably.

Read more here: http://www.charlotteobserver.com/news/local/crime/article196260704.html#storylink=cpy

Read more here: http://www.charlotteobserver.com/news/local/crime/article196260704.html#storylink=cpy

Tales Of Life On The Lam

     From the Lexington Herald-Leader:

To the saga of Eric C. Conn’s journey from wealthy Eastern Kentucky attorney to fugitive felon captured at a Pizza Hut in Central America, add this nugget:

Conn says he used a puppy to cross the border from Mexico into Guatemala, thinking it would help him get past security officers....

In his first communication with the media since being captured, Conn, 57, sent the Herald-Leader a 42-page, two-part handwritten letter with his account of why he decided to flee sentencing ...

Conn, who is in solitary confinement in the Grayson County jail while awaiting trial on escape and other charges, also called the newspaper from jail.

It’s a tale worthy of Conn’s larger-than-life persona, including how he pretended to be engaged to a woman so authorities wouldn’t check his identification while on a bus, and how he says police in Honduras, where he was captured Dec. 2, offered to let him go in return for a bribe he couldn’t cover.

Conn said having to look over his shoulder while a fugitive was miserable.

“Honestly, honestly, it was horrible,” he said. “I never got one true minute of relaxation.” ...

In his letter, Conn called his decision to abscond foolhardy, but he said he did it after becoming terrified of the prospect of being raped in prison. ...

Conn said he started reading about sexual abuse in prisons and became so fearful that one night, he “began to shake all over like a man on the verge of frostbite.” ...

     If you read this account, it's obvious that Conn had essentially no plan for what he would do after he crossed the border into Mexico. It's a wonder he got as far as he did.

Read more here: http://www.kentucky.com/news/state/article193706559.html#storylink=cpy

Read more here: http://www.kentucky.com/news/state/article193706559.html#storylink=cpy

Read more here: http://www.kentucky.com/news/state/article193706559.html#storylink=cpy

Read more here: http://www.kentucky.com/news/state/article193706559.html#storylink=cpy

Read more here: http://www.kentucky.com/news/state/article193706559.html#storylink=cpy

$40,000 In The Bank Of Guatemala

     From a Kentucky television station:

As former fugitive attorney Eric C Conn prepares to most likely lose his money and property in a settlement of fines, the attorney submitted a motion to request a public defender. ...

In the motion filed Friday, Conn states, “First, the Defendant qualifies financially. He has no assets or resources, liquid or otherwise. The United States has obtained judgments against Defendant for restitution, fines, civil damages and bond forfeiture in the tens of millions of dollars” 

Conn further writes that his only income has been fee checks from Social Security, and those are now being taken by the government. He further says that all of his property has been seized, and the only remaining bank account he had was an anonymous account with the Bank of Guatemala. Conn writes that the account initally, "had $40,000. By time taken in custody, I was no longer able to withdraw money, so think it had been depleted (sic)." ...

It Must Be Getting Real For Conn Now

     From the Lexington Herald-Leader:

Eric C. Conn violated his bond conditions when he left the country and did not show up for sentencing in his Social Security disability fraud case, U.S. Magistrate Judge Magistrate Judge Robert E. Wier ruled Thursday.

The decision means the government can immediately sell the former disability attorney’s office complex ...

No new information was provided at the hearing about how Conn allegedly left the country or his whereabouts in the six months he spent in hiding before he was arrested Dec. 2 in Honduras. ...

White said Conn gave prosecutors a substantial amount of information after negotiating his plea, which helped in cases against Daugherty and Bradley Adkins, a Pikeville psychologist convicted of signing false evaluations for Conn.

One question at issue is whether prosecutors should now be able to use information Conn provided to try to convict him of additional charges.

White said in court Thursday that Conn no longer has money to pay him.

White asked to stay on as Conn’s attorney by appointment of the court — paid with public funds ...

Read more here: http://www.kentucky.com/news/state/article192020264.html#storylink=cpy

Read more here: http://www.kentucky.com/news/state/article192020264.html#storylink=cpy

Read more here: http://www.kentucky.com/news/state/article192020264.html#storylink=cpyNo new information was provided at the hearing about how Conn allegedly left the country or his whereabouts in the six months he spent in hiding before he was arrested Dec. 2 in Honduras.

Read more here: http://www.kentucky.com/news/state/article192020264.html#storylink=cpy

Feds Going After Conn's Money

     The Feds are trying to recover Eric Conn's assets. So far, all they've gotten or even seem to know about aren't impressive. If you think Conn made tens of millions of dollars, you're wrong. Even with fraud, I don't see a way to make it that profitable a way to make a living. Conn's efforts at concealment seem to have been equally unimpressive. Bitcoin? Please, even I know that doesn't work.

Don't Do The Crime If You Can't Do The Time

     From The Republic:

Charges are piling up against a Kentucky lawyer whose capture in Central America ended his six months on the run to avoid prison for his role in a massive Social Security fraud case.

A federal prosecutor filed court papers Wednesday signaling the government will try Eric Conn on more than a dozen charges including mail fraud, wire fraud and money laundering.

If convicted, the flamboyant attorney could spend the rest of his life in prison.

Conn would have avoided the charges if he had abided by his plea deal with the government. ...

Explosive Package Sent To Acting Social Security Commissioner

     From The Daily Beast:

A Texas woman has been accused of mailing explosives to Gov. Greg Abbott and former President Barack Obama. Abbott reportedly opened the package but it failed to explode because he didn’t open it “as designed.” Court documents say 46-year-old Julia Poff faces charges of transporting explosives with intent to kill or injure for packages allegedly sent to Abbott and Obama in October 2016. Poff also allegedly sent a package to Carolyn Colvin, the commissioner of the Social Security Administration. A six-count indictment alleges the letter bombs “could've caused severe burns and death.” Poff was reportedly angry about not receiving support from her ex-husband. ...

Social Security Employee Convicted Of Fraud

     From some radio or television station in Indiana that likes to call itself "ABC57":

A South Bend woman who worked for the Social Security Administration was convicted in federal court of ten counts of making false entries in government records, two counts of conversion of government money, and one count of wire fraud.

Sharon Ramos, 56, was convicted after a four day jury trial.

Between January 2008 and December 2013, Ramos made false and fictitious representations on Supplemental Security Income accounts of numerous claimants. The improper entries resulted in numerous claimants receiving payments they were not entitled to receive, according to the US Attorney's Office. ... 

What About Criminal Charges?

     From a press release:

The United States recovered $200,000 as a settlement of allegations that Stephen G. Ackerman violated the federal False Claims Act by improperly accepting Social Security Disability Income payments and misleading the Social Security Administration (“SSA”) about his work activity, acting U.S. Attorney Bob Troyer announced.

The Settlement Agreement resolves contentions by the United States that Mr. Ackerman failed to accurately report his work activity to SSA between January 2011 and January 2016.  The United States contends that Mr. Ackerman engaged in substantial gainful activity that made him ineligible to receive his monthly disability income payments through his work on behalf of Organic Alternatives, a marijuana retail business Mr. Ackerman owns and operates.  Because Mr. Ackerman was not truthful to SSA about his work activity, the United States contends that he is liable under the False Claims Act, which allows for civil penalties and treble damages. ...

     Did Mr. Ackerman buy his way out of criminal charges?

Nine Months For Throwing Rock Through Window

     From the New Orleans Times-Picayune:

A Metairie man was sentenced Wednesday (Nov. 1) to nine months in prison for hurling a "medium to large sized rock" through a second-floor window of the U.S. Social Security Administration's office in Kenner, according to federal court documents.

Bobby Joseph Hammond, 38, was also ordered to pay $1,330 in restitution after he previously pleaded guilty to felony destruction of government property for throwing the rock. ...

In an interview with federal investigators, Hammond's mother said her son has mental illness and refuses to take his prescribed medication. ...

In a separate item, the affidavit shows that Hammond's mother told investigators she used to be the payee for her son's Social Security checks, but he had asked her to remove herself, which stopped the checks from being deposited into her bank account. 

After Hammond's checks were no longer deposited into her bank account, Hammond grew angry "because he did not have access to his money," according to his mother's statements. ...

Why So Little Attention To Retiree Fraud?

     I don't bother to post about it since the stories are repetitive and boring but Social Security prosecutes a number of people each year for disability benefits fraud. It's usually recipients who failed to report under the table earnings. In comparison to the number of people drawing benefits it's a small number.

     I never hear anything about another similar type of Social Security fraud, one that I'm pretty sure happens regularly. It may even happen at the same rate as that of disability recipients hiding earnings. That's early retiree fraud. We don't have a retirement earnings test for those over full retirement age, currently 66, but we do for those between 62 and 66. Retirement benefits for people in this age group are subject to reduction due to earnings. There are many, many retirees between 62 and 66. Surely, some of them are working under the table and drawing retirement benefits they're not entitled to.

     Is Social Security making any effort to root out retiree benefit fraud?  The only retirement benefit fraud I ever hear about is concealing a death and continuing to collect the decedent's benefits. That can't be the only fraud going on.

    Why all the attention to disability recipients and little or no attention to retiree benefit fraud? Why single out disability recipients?

Indictments In Conn Flight

      From the Lexington, KY Herald-Leader:

Disgraced former disability lawyer Eric C. Conn plotted his escape for a year before absconding from home detention weeks before he was to be sentenced in a massive fraud case, according to a federal indictment unsealed Monday.

The indictment levels new charges against Conn and Curtis Lee Wyatt, who worked for Conn at his law office in Stanville and allegedly tested security at the U.S. border with Mexico on Conn’s behalf. ...

The indictment charged that Wyatt, of Raccoon in Pike County, took a number of steps to help Conn escape, including opening a bank account in Wyatt’s name that Conn used to transfer money out of the country. ...

Wyatt also allegedly bought a 2002 Dodge Ram pickup truck from an unnamed seller in Somerset in May for $3,425, then delivered it to Conn in Lexington on June 1 for him to use in the escape. Wyatt had the truck registered under the name Disability Services LLC. ...

In the weeks leading up to the escape, Conn also had Wyatt use pedestrian entrances to Mexico at Nogales, Ariz., and Columbus, N.M., in order to test security procedures for people crossing into Mexico from the U.S., the indictment said.

The FBI found the truck in New Mexico. ...

The indictment also mentions an unindicted co-conspirator. That can refer to someone who is cooperating with authorities in a case. ...

Wyatt also allegedly played a role in trying to discredit an employee at the Social Security Administration who had tried to bring attention to potential improprieties by Conn and David B. Daugherty, an administrative law judge who rubber-stamped disability claims for Conn. Conn came up with a scheme to have his employees follow the woman, Sarah Carver, to try to discredit her by catching her not working from home on days when she was supposed to, according to sworn statements from other former Conn employees to U.S. Senate investigators. ...

     I've never crossed the U.S.-Mexico border. Don't the Mexican authorities ask to see a passport?