Martin Luther Dease, 54, of Clio, South Carolina, stood before a federal judge in Florence and admitted to stealing over $41,000 in government funds by pretending to be the father of his own niece. Dease pleaded guilty to Theft of Government Funds, a violation of Title 18, United States Code, Section 641, marking the end of a years-long scheme built on forged documents and lies.
The fraud unfolded between November 2016 and May 2017, when Dease submitted a falsified birth certificate to the Social Security Administration, listing himself as the biological father of his niece. That lie paved the way for him to collect Child’s Insurance Benefits to which he had no legal claim. The benefits, meant for dependent children of insured parents, were instead funneled into Dease’s pockets through deliberate deception.
U.S. Attorney Beth Drake confirmed the plea in federal court, where United States District Judge Bryan Harwell accepted the guilty plea. Sentencing has been delayed pending a presentence report from the U.S. Probation Office. Though Dease admitted guilt, he hasn’t yet faced punishment — but the stakes are high.
Under federal law, Theft of Government Funds carries a maximum penalty of 10 years in prison and a fine of $250,000. Prosecutors are pushing for accountability, emphasizing that programs like Social Security are lifelines, not personal piggy banks. Dease’s actions didn’t just break the law — they undermined a system meant to protect vulnerable families.
The investigation was led by the Office of the Inspector General of the Social Security Administration, the federal watchdog responsible for rooting out waste, fraud, and abuse in one of the nation’s largest benefit programs. Their probe peeled back layers of deception, ultimately exposing Dease’s fabricated family ties and the paper trail he left behind.
Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case. As the court prepares for sentencing, Dease’s name joins a growing list of South Carolinians caught exploiting public trust for personal gain. The case serves as a stark reminder: fraud leaves a paper trail, and the feds are watching.
Related Federal Cases
- Javarius G. Teague’s 33 Months for Laundering Funds from Servicemen · South Carolina
- Charlotte Social Worker Rips Off Medicaid, COVID-19 Funds for $1.3M · North Carolina
- Greer PPP Crook Gets 6+ Years · South Carolina
- FDIC Appoints Five New Members to Advisory Committee on Community Banking · Mississippi
- Altoona First Savings Bank CEO Troy Campbell Named to FDIC Advisory Committee · Pennsylvania
Key Facts
- State: South Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News