Kelli Cashion, Bank Fraud and Social Security Theft, Arkansas 2009

LITTLE ROCK, AR – A Sherwood woman with a history of legal trouble is headed to federal prison after admitting to a decade of brazen financial crimes. Kelli Hogue, formerly known as Kelli Cashion, 59, was sentenced today to 96 months – eight years – for bank fraud and stealing from Social Security. The sentence, handed down by United States District Judge Lee P. Rudofsky, marks the culmination of a case that exposed a pattern of deception and greed.

Hogue’s scheme began in 2009 when she took a position as a clerk and paralegal at the Herrod Law Firm in North Little Rock. Though previously disbarred in Arkansas in 2001 following a forgery conviction, she continued to work in the legal field while simultaneously serving as the bookkeeper for Runyan Sanitary Sewer District 211, a non-profit servicing the North Little Rock Water Department. From 2011 to 2018, Hogue systematically siphoned funds from Runyan, writing approximately 180 unauthorized checks to herself totaling a staggering $669,599.71. She cleverly concealed these thefts by mischaracterizing them as legitimate business expenses in QuickBooks.

But Hogue’s fraud didn’t stop there. Simultaneously, she was illegally collecting Social Security disability payments. She lied to the Social Security Administration (SSA), claiming she’d stopped working in 2008 or 2009 – a false statement given her continued employment at both the law firm and Runyan. By concealing her ongoing income, she fraudulently received an additional $120,523 in disability benefits. The double-dipping scheme went undetected for years, fueled by Hogue’s calculated manipulation of the system.

Hogue initially pleaded guilty in August 2021, but attempted to sway Judge Rudofsky with fabricated letters of support. She submitted four letters, purportedly from doctors and her pastor, seeking a reduced sentence. Investigators quickly uncovered the deception, revealing that all four individuals had denied writing the letters. The blatant attempt to mislead the court prompted Judge Rudofsky to revoke Hogue’s pre-sentencing release and order her held in custody pending sentencing.

While Hogue had repaid $120,000 to the SSA and $669,000 to Runyan, the money came from a disturbing source: over $4 million obtained through falsified federal tax returns. An ongoing investigation is now focused on those fraudulent returns. United States Attorney Jonathan D. Ross condemned Hogue’s actions, stating, “This defendant has spent years defrauding her employer as well as the government out of hundreds of thousands of dollars…Her brazen theft is an injustice to those who pay into the system.”

Gail S. Ennis, Inspector General for the SSA, echoed those sentiments, emphasizing the importance of protecting the integrity of the agency’s programs. In addition to the 96-month prison sentence, Judge Rudofsky ordered five years of supervised release and a $100,000 fine. The case was investigated by the United States Secret Service and the Social Security Administration – Office of the Inspector General, a clear signal that those who prey on vulnerable systems will face serious consequences.

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