Frances Kenney Moseley, Social Security and Tax Fraud, Massachusetts 2014

Defendant Grasps for Straws in Bid to Avoid Jail Time

BOSTON – In a shocking turn of events, Frances Kenney Moseley, 66, was sentenced to three years of probation, including six months of home confinement, 1500 hours of community service, a fine of $5,000, and restitution of $470,188 for taking more than $220,000 in Social Security payments to which she was not entitled and failing to pay taxes on that income.

This case is a prime example of the egregious nature of posthumous Social Security fraud. Following the death of Moseley's father in 2003, the Social Security Administration continued to deposit his retirement benefits into his bank account. Unaware that he was deceased, Moseley regularly withdrew the deposited Social Security funds after her father's death. Between 2003 and 2010, Moseley withdrew approximately $222,172 in Social Security funds paid to her deceased father.

Moseley also failed to report the money as income on her federal income taxes. In addition, TIAA-CREF, a private investment/annuity company, continued to deposit annuity payments into the father's account. Between 2003 and 2010, Moseley regularly withdrew the annuity payments, totaling approximately $248,016.

This case is brought as part of an ongoing effort by the U.S. Attorney's Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.

The U.S. Attorney's Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money. In February 2015, Charles Gerbutavich, of Manchester, was sentenced to one year of probation, including three months of home confinement, and was ordered to pay a $3,000 fine and $161,587 in restitution to the Social Security Administration.

In January 2015, Graeme Griffith, of Andover, pleaded guilty to taking his deceased father's Social Security benefits totaling $149,285. In October 2014, Mary Murphy, of Dorchester, was sentenced to 18 months of home confinement and 10 hours per week of community service, and ordered to pay a fine of $40,000 and $331,630 in restitution. Richard Oldham, of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother's name.

Source: https://www.justice.gov/usao-ma/pr/boston-woman-sentenced-social-security-and-tax-fraud