Loretta Galloway, 55, of Northumberland, Pennsylvania, is facing federal charges for cashing in on her dead husband’s Social Security checks for more than five years. Federal prosecutors say the scheme netted her over $83,000 meant for a man who was no longer alive — money she used to cover household bills and personal expenses while pretending he was still breathing.
The indictment, handed down January 31, 2017, by a federal grand jury and unsealed the following day, accuses Galloway of deception so persistent it stretched across 60 months of fraudulent claims. According to U.S. Attorney Bruce D. Brandler, Galloway continued submitting benefits applications and collecting payments long after her husband’s death — a crime that doesn’t just break the law, it guts a system meant to protect the vulnerable.
The Social Security Administration’s Office of the Inspector General led the investigation, peeling back layers of paperwork to expose the fraud. Investigators found no attempt by Galloway to report the death — only a steady stream of deposits into her accounts, month after month, year after year. Each check signed, each withdrawal made, built the evidence against her.
Assistant U.S. Attorney Evan Gotlob is prosecuting the case, underscoring the federal government’s push to crack down on benefit theft. “These aren’t victimless crimes,” said one DOJ source familiar with the case. “Every dollar stolen from Social Security is a dollar ripped from someone who actually needs it.”
If convicted, Galloway faces up to 10 years in federal prison, a term of supervised release, and steep fines. But under Federal Sentencing Guidelines, the judge will weigh the severity of the crime, Galloway’s personal history, and the broader need for deterrence. The statutory maximum is just the starting point — the real sentence could land anywhere within that spectrum.
For now, Galloway remains presumed innocent until proven guilty in court. But the indictment sends a clear message: the feds are watching. And when someone profits off a ghost, they shouldn’t expect to vanish quietly.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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