Donna M. Smith, 56, of Cohoes, New York, is staring down federal charges for allegedly faking disability while cashing paychecks from eight different employers across the Capital District for nearly a decade. The indictment unsealed today alleges a brazen fraud against the Social Security Administration, stretching from 2006 to 2015.
Smith began collecting Disability Insurance Benefits in 2006—meant for those unable to work due to medical conditions—while continuing to hold down jobs behind the government’s back. According to the indictment, she worked full-time stints with multiple employers while collecting taxpayer-funded benefits, all while swearing under penalty of perjury that she was not employed.
In 2012 and again in 2015, Smith submitted official forms to the SSA falsely declaring she was not working. Those statements, now central to the federal case against her, are alleged to be knowing lies meant to keep the disability checks flowing. The benefits are designed to replace lost income for the truly disabled—not those punching timecards.
The feds didn’t back down quietly. U.S. Attorney Richard S. Hartunian and John F. Grasso, Special Agent-in-Charge of the SSA Office of the Inspector General, New York Field Office, announced the indictment today. They say the system was exploited for years, and now Smith will face the consequences in court.
If convicted on all counts, Smith faces up to 5 years in federal prison, up to 3 years of post-imprisonment supervised release, and a $250,000 fine. The sentence, if any, will be handed down by Senior U.S. District Judge Lawrence E. Kahn, who will weigh the U.S. Sentencing Guidelines, the nature of the charges, and other legal factors.
Smith was arraigned this morning in Albany before U.S. Magistrate Judge Christian F. Hummel. She was released pending trial under court-ordered conditions. The case is being investigated by the SSA Office of the Inspector General and prosecuted by Special Assistant U.S. Attorney Jason W. White. The charges remain allegations; Smith is presumed innocent until proven guilty.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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