Abingdon, Virginia — A 58-year-old St. Paul man has been nailed for playing the system, lying to the feds to keep cashing disability checks he wasn’t entitled to. Ronald W. David stood before a federal judge today in the United States District Court for the Western District of Virginia and was sentenced for one count of making materially false, fictitious and fraudulent statements — a crime that cost taxpayers over $70,000.
Dubbed a textbook case of disability fraud, David admitted to keeping his self-employment a secret while collecting benefits from the Railroad Retirement Board. On July 25, 2015, he knowingly failed to report his work with Copperhead Road Properties LLC — a direct violation of the terms tied to his eligibility for disability payments. Federal rules require recipients to disclose all employment, especially self-employment, but David chose to stay silent and keep the money rolling in.
Special Assistant United States Attorney Kathleen Carnell laid out the evidence during prior hearings, showing David not only misrepresented his work status but actively concealed his business involvement. That deceit allowed him to continue drawing disability benefits while operating as a self-employed individual — a move investigators say was deliberate and financially motivated.
The Railroad Retirement Board, tasked with overseeing benefits for rail workers and their families, doesn’t take kindly to fraud. The case was investigated by Special Agent Patrick Fletcher of the Office of Inspector General, U.S. Railroad Retirement Board, whose digging exposed the gap between David’s claims and his actual work activity. The probe confirmed David was engaged in business operations while claiming he was too disabled to work.
Judge handed down a sentence of two years of probation, including six months of home confinement. No prison time, but the sting of accountability remains. David has already paid full restitution — $70,206 — to the Railroad Retirement Board, a sum representing every illicit dollar he collected while gaming the system.
Acting United States Attorney Rick A. Mountcastle emphasized that fraud against federal benefit programs will be pursued aggressively. ‘Lying to obtain disability benefits isn’t just a paper offense — it robs funds from those truly in need,’ he said. ‘We’re watching, and we’re coming after cheats like Ronald David.’
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Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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