Can Social Security Disability Fraud Send You to Prison?

The short answer is yes: disability fraud can send you to prison. It’s a severe offense that can warrant both criminal and felony charges.

The SSA can impose heavy penalties even if you don’t go to prison. This is in addition to returning the benefits you received under fraud.

Though fraudulent benefits represent only a tiny percentage of all disability payments, they still happen. The SSA also has a zero-tolerance policy for fraudsters. According to the agency, committing disability fraud is tantamount to stealing from the public. Thus, any level of fraud is unacceptable.

COMMON TYPES OF DISABILITY FRAUD

To combat fraud, the SSA created the Cooperative Disability Investigations (CDI) program. It brings together personnel from various government agencies to investigate suspicious disability claims. Some of the common types of disability fraud they found are:   

FALSIFICATION OF MEDICAL DOCUMENTS                          

One’s medical condition plays a huge role in determining their eligibility for disability benefits. This is why some are tempted to falsify medical documents just to qualify for benefits. Sometimes, they also team up with doctors to make false medical claims. \ 

MISSTATEMENT OF MATERIAL FACTS

The SSA requires all beneficiaries to declare all material information that can affect their application accurately. Unfortunately, not everyone follows this requirement.

Since previous earnings determine one’s disability benefits amount, some people deliberately overstate their income. Those applying for Supplemental Security Income (SSI) also tend to declare a smaller income than they were earning. Other people also lie about their age, education, and employment history.

HIDING OF RELEVANT INFORMATION

In 2019, a Washington state woman was charged with a felony for disability fraud. She claimed that her condition prevented her from doing any type of work that qualified her for disability payments. While receiving benefits, she ran her own business and earned more than her previous wage.

Failure to declare additional income or an improvement in a medical condition also qualifies as fraud, whether intentional or not.

FAILURE TO REPORT A BENEFICIARY’S DEATH

In Florida, a woman was sentenced to three years and five months in federal prison for disability fraud. For 13 years, she enjoyed the disability benefits of her deceased grandparents. She even used some of the money to purchase a luxury car.

Certain family members are eligible for disability benefits when the primary beneficiary dies. However, they must file for themselves rather than continue receiving the deceased beneficiary’s benefits.

SOCIAL SECURITY DISABILITY FRAUD PENALTIES

Individuals involved in Social Security Disability fraud may face severe repercussions. If found guilty, they could be sentenced to a maximum of five years behind bars, fined up to $250,000, or both.

The consequences are even more severe in cases where the offender holds a position of trust, such as doctors, representatives, or SSA employees. These individuals can be punished with up to 10 years in prison.

Moreover, they may be subject to civil lawsuits and compelled to pay fines of up to $7,500 for each deceptive action. These penalties underscore the severe nature of Social Security Disability fraud and aim to maintain the system’s integrity.