A Waterloo, Iowa woman is heading to federal prison for defrauding the Social Security Administration for more than twenty years. Penny Linn Teel, age 60, received a prison term of 21 months after pleading guilty to one count of theft of government property.
According to court documents, Teel began receiving insurance benefits from the Social Security Administration in 1992 after her husband passed away. However, in 2002, Teel married again, but she failed to report or disclose her marriage to the Social Security Administration, making her ineligible for the benefits she continued to receive.
Teel’s deceit didn’t stop there. In 2022 and 2023, she filled out applications for Social Security benefits for her husband, falsely indicating that he was not married. When confronted by law enforcement agents, Teel made additional false statements about her marriage and whether she had informed the Social Security Administration that she was married.
Teel’s plea agreement and subsequent sentencing were the result of a thorough investigation by the Social Security Administration Office of Inspector General and prosecution by Assistant United States Attorney Kyndra Lundquist. United States District Court Chief Judge C.J. Williams handed down the sentence in Cedar Rapids.
In addition to her 21-month prison term, Teel was ordered to make $297,281 in restitution to the Social Security Administration. She will also serve a three-year term of supervised release after her prison term. As there is no parole in the federal system, Teel will be required to serve her full sentence.
Teel was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set. The case file number is 24-CR-2042, and court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. This sentence serves as a reminder that fraud against the government will not be tolerated and those who engage in such activities will be held accountable.
The Social Security Administration relies on the honesty of its beneficiaries to ensure that benefits are distributed fairly and to those who are truly eligible. Teel’s actions not only defrauded the government but also undermined the integrity of the system. Her sentence is a testament to the dedication of law enforcement agencies and prosecutors to combating fraud and protecting the rights of American citizens.
RELATED: Waterloo Woman Sentenced for 22-Year Social Security Fraud
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Key Facts
- State: Iowa
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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