Katie Marie Day, 40, of Bastrop, Louisiana, pleaded guilty to stealing $40,569 in Social Security Administration benefits, admitting she lied for years to keep collecting disability payments she wasn’t entitled to. The federal charge of theft of government property was entered before U.S. Magistrate Judge Karen L. Hayes, with sentencing scheduled for June 13, 2018.
Day claimed she was separated from her husband when she applied for disability benefits in August 2009, a critical falsehood that allowed her to bypass income eligibility limits. In reality, she lived with her husband off and on from their 2000 marriage until his death in September 2016. Had the Social Security Administration known the truth, her benefits would have been denied or drastically reduced.
It wasn’t until January 9, 2017, during an interview at the SSA office in Monroe, that Day admitted she had not been separated. That confession triggered an audit, revealing the full extent of the fraud: $40,569 in overpayments between October 2009 and September 2016. The funds were issued based on her false claim of financial need.
The case was investigated by the Social Security Administration’s Office of Inspector General, which routinely targets fraud that drains taxpayer-funded programs. Authorities say cases like this undermine public trust and divert resources from those who truly qualify for assistance.
Day now faces up to 10 years in federal prison, a $250,000 fine, and three years of supervised release. The plea, which still requires final approval from U.S. District Judge S. Maurice Hicks Jr., marks a rare public accountability moment in a crime often hidden behind paperwork and bureaucratic blind spots.
Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case, underscoring the Department of Justice’s ongoing push to crack down on welfare and benefit fraud across Louisiana and the broader Fifth Circuit.
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Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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