A brazen scheme to defraud the Social Security Administration has landed a Dryden, Virginia man six months in the slammer. Phillip Reece, 47, was sentenced in the United States District Court for the Western District of Virginia in Abingdon for converting his children’s Social Security Survivor Benefits to his own use.
According to evidence presented at the sentencing and guilty plea hearings, Phillip Reece was the third-party payee for his three children’s Social Security Survivor Benefits between 1999 and 2011. He was required to use those benefit payments for the care and support of his children.
However, an investigation by the Social Security Administration’s Department of Inspector General discovered that Phillip Reece falsified multiple Social Security Administration documents claiming his three children resided with him during this timeframe, when in actuality they resided with their grandparents.
Furthermore, Phillip Reece did not use any of the Social Security Benefits for the support and care of his three children and unlawfully used $91,336 of his children’s Social Security Survivor Benefits for his own personal expenses.
The investigation of this case was conducted by the Social Security Administration’s Department of Inspector General. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
The six-month sentence handed down to Phillip Reece serves as a stark reminder of the consequences of defrauding the Social Security Administration. As the case demonstrates, those who engage in such activities will be held accountable for their actions.
Phillip Reece’s actions not only undermined the trust placed in him as a third-party payee but also diverted much-needed funds from his children, who were entitled to receive their rightful benefits.
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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