ALBANY, N.Y. — Tammy A. Grumme, 41, of Glenmont, New York, stood in federal court today and admitted to stealing nearly $80,000 from the Social Security Administration — a grift that siphoned money meant for her own son. The plea caps a years-long fraud in which Grumme lied about her son’s custody and residence to keep benefits flowing directly into her bank account.
According to court documents unsealed today, Grumme submitted false forms to the SSA between 2011 and 2013, claiming she was caring for her son and that he lived with her — even though he had been removed from her custody. She admitted under oath that she knowingly falsified the information because she knew benefits would stop if the truth came out. The scheme was simple, cold, and effective: lie on paper, cash the check.
As a direct result of her deception, Grumme pocketed $37,629 in benefits she was never entitled to receive. Worse, she intercepted an additional $40,629 in payments that were supposed to go to her son — funds meant for his care, vanished into her personal expenses. The Social Security system, designed to protect the vulnerable, was turned against one of its intended beneficiaries by the person who should have been looking out for him.
U.S. Attorney Richard S. Hartunian didn’t mince words: “This wasn’t an error. This was theft — deliberate, repeated, and sustained over years.” John F. Grasso, Special Agent in Charge of the SSA Office of the Inspector General, New York Field Office, added that exploiting federal benefits at a child’s expense is among the most contemptible kinds of fraud investigators see.
Now, Grumme faces up to 10 years in federal prison, a $250,000 fine, and up to three years of supervised release after incarceration. Sentencing is scheduled for February 14, 2017, before Senior United States District Judge Frederick J. Scullin, Jr. While the final sentence will depend on federal guidelines and judicial discretion, prosecutors are pushing for accountability that matches the betrayal.
The case was investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White. No restitution figure has been publicly confirmed, but officials stress that recovering the stolen funds remains a priority — especially the portion owed to Grumme’s son, whose benefits were stolen twice: once by the system’s failure, and once by his mother.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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