Gerald W. Costner, Social Security Fraud, Columbia SC, 2023

COLUMBIA, SC – Gerald W. Costner, 71, of Fort Lawn, South Carolina, is trading the comfort of his home for a federal prison cell after being sentenced for a brazen, decades-long scheme to steal government funds. Costner was sentenced to five months imprisonment and ordered to pay restitution totaling $92,925.00, according to United States Attorney Bill Nettles.

The scam, revealed during a change of plea hearing, centered around the Social Security benefits of Costner’s now-deceased roommate. From June 1992 until January 2014, Costner continued to cash checks belonging to his roommate after the man had died. He never bothered to inform the Social Security Administration (SSA) of the death, effectively pocketing benefits he wasn’t entitled to for over 21 years.

The total haul from this callous act of theft amounted to a staggering $92,925.00. Chief United States District Judge Terry L. Wooten of Columbia clearly wasn’t impressed with Costner’s actions, handing down the five-month sentence as a direct consequence of the violation of 18 U.S.C. § 641 – theft of government funds. It’s a stark reminder that even seemingly ‘small’ frauds can carry serious penalties.

Federal investigators with the Office of Inspector General, Social Security Administration, were the ones who untangled this long-running fraud. Their work exposed Costner’s scheme and brought him to justice. The SSA OIG routinely investigates cases like these, protecting taxpayer dollars and ensuring the integrity of the Social Security system.

Assistant United States Attorney William E. Day II, of the Columbia office, skillfully prosecuted the case, presenting the evidence that led to Costner’s conviction and subsequent sentencing. Day’s office has a reputation for aggressively pursuing white-collar criminals, and this case is another example of their commitment.

While five months may seem lenient to some, it’s a clear message: stealing from the government, even over a long period, will have consequences. Costner will now have plenty of time to reflect on his actions while serving his sentence, and the $92,925.00 in restitution will hopefully offer some measure of justice to the taxpayers who were defrauded. For inquiries, contact Bill Day at (803) 929-3000.