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New Orleans Duo Indicted for $443k Social Security Scam
NEW ORLEANS – A federal grand jury has indicted two New Orleans men, Neely B. Hargis, 60, and Joseph T. Trott, 60, for conspiracy to commit wire fraud, theft of government funds, and making false statements to federal agents.
According to the indictment, Hargis and Trott stole approximately $443,455.00 in Social Security Administration (“SSA”) and Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds. The scheme targeted an individual, W.S., who received SSA monthly benefits beginning in March of 1992. W.S.’s monthly SSA benefits were directly deposited into her Capital One Bank (“Capital One”) account.
From the time of W.S.’s death on August 30, 1999, to July 6, 2020, the SSA deposited approximately $442,264.00 in SSA funds into W.S.’s Capital One account intended for W.S. Hargis and Trott purchased the North Dupre Street property in 2002, where W.S. lived, and were also the owners of a property in New Smyrna Beach, Florida.
Hargis and Trott used the stolen funds for personal expenses, including auto loans, utility bills, credit cards, and health insurance bills. For example, they electronically transferred money from W.S.’s Capital One account to make fifty-two (52) payments totaling $61,495.00 to Ford Motor Credit, for the purchase of two Lincoln vehicles.
Both Hargis and Trott lied to special agents with the Social Security Administration, Office of Inspector General, when they were interviewed about the theft of the Social Security funds from W.S.’s Capital One account. If convicted, Hargis and Trott face up to 20 years imprisonment, up to three (3) years of supervised release, and up to a $250,000 fine as to Count One.
The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit. The U.S. Attorney’s Office would like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General with this matter.
U.S. Attorney Duane A. Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
For each of the five counts, Hargis and Trott also face payment of a mandatory $100 special assessment fee. The indictment is a serious reminder of the importance of protecting government benefits and ensuring the integrity of our financial systems.
As the investigation continues, the U.S. Attorney’s Office urges anyone with information about this case to come forward and report any suspicious activity to the authorities.
The Social Security Administration has implemented measures to prevent similar scams, including increased monitoring of beneficiary accounts and enhanced security protocols for online transactions.
Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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