Danielle Coleman, Theft of Government Funds, Louisiana 2023

A New Orleans woman has been sentenced to five years of probation and ordered to pay restitution and a $100 special assessment fee after being found guilty of stealing more than $86,000 in Social Security funds.

Danielle Coleman, 39, of New Orleans, was sentenced on April 27, 2023, after previously pleading guilty to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.

According to court documents, Coleman's grandmother was authorized to receive Social Security Administration (“SSA”) Title II – Retirement Survivor Insurance (RSI) benefits up until her death on September 8, 2009. An investigation by special agents with the SSA, Office of Inspector General and United States Department of Treasury, Inspector General for Tax Administration, revealed that Coleman possessed her late grandmother's ATM card and began withdrawing money from her account after her death.

Coleman used her late grandmother's ATM card to pay for her own personal expenses, knowing she was not entitled to those Social Security benefits. Coleman failed to notify the SSA of her grandmother's death and took approximately $86,280.00 in SSI benefits from her account. An additional $1,200.00 of COVID-19 stimulus funds were erroneously deposited into Coleman's grandmother's account, and Coleman also used these funds on personal expenses.

The United States District Judge Carl J. Barbier sentenced Coleman to five years of probation, restitution, and a mandatory $100 special assessment fee.

U.S. Attorney Duane A. Evans praised the work of the Social Security Administration, Office of the Inspector General and the United States Department of Treasury, Inspector General for Tax Administration. The prosecution of this case is being handled by Assistant U.S. Attorneys Rachal Cassagne and Spiro Latsis.

The case highlights the importance of reporting any changes in a beneficiary's status to the SSA to prevent similar thefts from occurring.

Coleman's actions resulted in a significant financial loss to the Social Security Administration and a breach of trust by a family member.

This case is a reminder that the SSA takes allegations of theft and misuse of benefits seriously and will prosecute those who engage in such behavior.

Source: https://www.justice.gov/usao-edla/pr/new-orleans-woman-sentenced-theft-more-86000-social-security-funds