Losing a spouse is a deeply emotional experience, often accompanied by intense feelings. It also presents a set of challenges and responsibilities, including the need to notify the Social Security Administration (SSA) about the benefits of your deceased spouse.
While it might be tempting to skip this step and proceed with collecting payments, it's crucial to understand that this would be considered Social Security fraud. Most people associate social security fraud with stealing someone's Social Security number to get benefits illegally.
However, one of the most common types of Social Security fraud is not reporting a spouse's death and continuing to receive benefits unlawfully. Many individuals may not even realize that this is a federal crime.
Social Security fraud occurs when an individual intentionally provides false information or withholds relevant details to obtain benefits to which they are not entitled.
Some individuals might rationalize their actions by citing their entitlement to benefits due to their spouse's lifelong work. However, the law unequivocally views this as fraudulent behavior.
A conviction can lead to severe penalties, including up to 10 years in federal prison.
Risks of Engaging in Fraud
Receiving Social Security payments after a spouse's death can be sensitive. We're here to guide you through the correct procedures and help you spot potential fraud risks. It's essential to understand these aspects and take appropriate steps to prevent unintentional fraud.
When a Social Security beneficiary passes away, it is essential to notify the SSA promptly. Surviving spouses or children may be eligible for survivor benefits if a Social Security recipient passes away. Additionally, survivors usually receive a one-time lump sum death benefit of $255.
Common examples of fraud include individuals illegally collecting Social Security benefits after a person has died, which is a federal offense. Another type involves using false information to claim benefits. Those convicted of Social Security fraud may face fines and jail time.
18 U.S.C. § 641 and Social Security Fraud
The Social Security Administration (SSA) has denied claims that millions of deceased people still receive benefits, explaining that outdated recordkeeping has caused incomplete death data in their system.
The SSA promptly corrects its records and can issue a letter confirming the correction, which can then be shared with other organizations, agencies, and employers.
Social Security fraud involving withholding a spouse's death information is commonly prosecuted under 18 U.S. Code 641. Although this law does not directly target Social Security fraud, it covers the theft or misappropriation of federal government property, including Social Security funds.
When someone repeatedly accepts benefits for a deceased person, they are essentially stealing government funds for personal use by unlawfully converting them. According to 18 U.S.C. 641, this act is a prosecutable crime.
What does the law specify?
18 U.S. Code 641, Public money, property, or records, says "Whoever embezzles, steals, purloins, or knowingly converts to his use or the use of another, or without authority, sells, conveys or disposes of any record, voucher, money, or thing of value of the United States or any department or agency thereof, or any property made or being made under contract for the United States or any department or agency thereof; or
Whoever receives, conceals, or retains the same with intent to convert it to his use or gain, knowing it to have been embezzled, stolen, purloined, or converted-
Shall be fined under this title or imprisoned not more than ten years, or both; but if the value of such property in the aggregate, combining amounts from all the counts for which the defendant is convicted in a single case, does not exceed the sum of $1,000, he shall be fined under this title or imprisoned not more than one year, or both.
The word "value" means face, par, or market value, or cost price, either wholesale or retail, whichever is greater."
Potential Legal Penalties
Under 18 U.S.C. 641, penalties depend on the value of government property involved. If the total unlawfully obtained exceeds $1,000, it is considered a felony, which can lead to:
- Fines of up to $250,000, and
- Imprisonment for up to 10 years.
If the stolen amount is under $1,000, it is considered a misdemeanor. Convictions for misdemeanors can lead to:
- Fines reaching up to $100,000 and/or
- Imprisonment for up to one year.
In addition to criminal penalties, the SSA can pursue restitution, demanding repayment of all benefits received unlawfully. This could exacerbate financial hardships, as wages may be garnished or liens placed after repayment orders are issued.
Defenses Against Social Security Fraud Charges
As noted, receiving Social Security payments after a spouse's death without reporting it constitutes fraud. The Social Security Administration (SSA) actively recovers overpayments and pursues legal action against those responsible for them.
Although Social Security fraud is a serious issue, not all accusations result in a conviction. If you face charges for not informing the SSA about a spouse's death, a skilled federal defense lawyer can employ several important defenses to challenge the charges. Typical defenses include:
- Lack of Intent: To obtain a conviction under 18 U.S.C. 641, prosecutors need to demonstrate that you intentionally and knowingly engaged in fraudulent conduct. If you were unaware of the obligation to inform the SSA about your spouse's death, this could weaken the case's claim of deliberate misconduct.
- Misunderstanding Roles: Some individuals might not realize they are unlawfully receiving their deceased spouse's Social Security payments. For instance, if direct deposit continues into a joint account they can access, they may assume it's allowed. Confusion about the details of disability or survivors' benefits can also cause unintentional violations. However, this would demonstrate a lack of deliberate intent on your part.
- Mitigating Penalties: Even when misconduct is proven, entering into proactive restitution agreements and cooperating can significantly lower penalties. People who voluntarily return all overpaid funds or collaborate with authorities often have a more favorable standing in legal cases. Courts may consider their willingness to make amends during sentencing.
What to Do If This Applies to You
If you have not reported a spouse's death and are still receiving Social Security payments, it is crucial to address this promptly.
Contact the SSA as soon as possible to reduce your liability. You can do this by calling the SSA's toll-free number or visiting your local SSA office. Voluntarily disclosing the issue demonstrates good faith and can help limit penalties.
You should also seek advice from an experienced federal criminal defense attorney promptly, especially if charges have been filed or are imminent. An attorney can analyze the allegations, discuss your rights and protections, and help pursue the best possible outcome. They can also guide you through the legal process and represent you in court if necessary.
For further assistance, contact our federal criminal defense law firm, Cron, Israels & Stark, located in Los Angeles, California.
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