Elderly Man Collects Deceased Mother’s Social Security Benefits

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Each year, fraudulent benefit claims cost the Social Security Administration (SSA) millions of dollars in overpayments. Accepting benefits for a person who is deceased is one of the most common ways the program is defrauded. Today’s Fraud of the Day, from the SSA’s Office of the Inspector General (OIG), Office of Investigations, looks at one such case of an elderly man who is on his way to the slammer for collecting Social Security benefits paid on behalf of his mother, who died in 1984.

The SSA realized there might be a problem in December 2010 when the fraudster’s mother’s date of birth, which was listed on Social Security records, indicated that she would have been more than 104 years old. An investigation was opened, and the State of Texas provided a death certificate confirming the woman had died in November 1984. (This was a state public record, so how was it missed?)

According to the SSA, an 81-year-old man (Wow, he’s an old fraudster) from Montgomery County, Texas, accepted the guilty plea for theft of government property (his momma’s Social Security benefits). Lucky for him, the judge handed down a reduced sentence of 18 months due to the man’s age and health issues, and he will serve a term of three years of supervised release after his prison term is up. The fraudster also owes the government more than $243,000 in restitution. It appears that he received his mother’s Social Security benefits for more than a quarter of a century by electronic deposit into a joint bank account where he was the only other person authorized to sign on the account.

Fraud is committed by the young and the old alike. The crime doesn’t discriminate based on age and neither does the government when prosecuting Social Security fraud. It’s a felony to collect benefits under another individual’s Social Security Number, period. (What would momma say?)

Source: Today’s ”Fraud of the Day” is based on a news release dated November 30, 2012, and titled, ”Texas Man Sentenced to Federal Prison for Theft of Government Property,” appearing on the Website of the Social Security Administration’s Office of the Inspector General.

CONROE, TX – A Conroe area resident has been ordered to federal prison for theft of government property in connection with Social Security benefits paid on behalf of his mother, United States Attorney Kenneth Magidson announced today. Kline Fisher Budd, 81, a resident of Montgomery County in the Conroe area, pleaded guilty Aug. 31, 2012.

Today, U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, took into consideration Budd’s age and health issues and handed him an 18-month sentence. He was further ordered to pay $243,044.97 in restitution. In handing down the sentence, Judge Werlein noted that Budd had taken Social Security funds for 26 years. Budd will also be required to serve a term of three years of supervised release following completion of the prison term.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.