Susan Hacker Sentenced in Social Security Fraud Scheme

Susan Hacker stole $52,025.82 from her disabled brother’s Social Security payments over an 11-year span, using the funds for her own benefit while violating her role as court-appointed representative payee. The fraud, which ran from December 2001 to January 2013, ended in an eight-month federal prison sentence and full restitution ordered by the court.

On October 13, 2016, United States District Judge John M. Gerrard handed down the sentence in federal court, including eight months of imprisonment, three years of supervised release, and restitution of $52,025.82. Hacker, the sister of a man entitled to Social Security disability benefits since 1971, had been legally entrusted to manage his finances. Instead, she treated his account as her personal piggy bank.

As representative payee, Hacker was required to use the funds solely for her brother’s care and well-being. Federal investigators found she routinely siphoned money from his account, blending Social Security disability payments with $26,692.48 in earnings her brother made from odd jobs—bringing the total theft to $52,025.82. The breach of trust spanned more than a decade, exposing systemic gaps in oversight of payee arrangements.

The Social Security Administration – Office of Inspector General led the investigation, uncovering a pattern of unauthorized withdrawals and personal expenditures. Records show Hacker did not allocate funds to her brother’s necessities, despite the clear mandate of her fiduciary role. The case highlights how vulnerable beneficiaries can be exploited by those closest to them.

No additional criminal history was cited in court documents, but prosecutors emphasized the predatory nature of the crime—exploiting a dependent sibling under the guise of care. Authorities stressed that such fraud undermines public trust in federal benefit programs and harms the very individuals they are designed to protect.

Hacker must now serve her sentence, repay every dollar stolen, and face federal supervision upon release. The case stands as a stark warning to other representative payees: abuse of power will be met with federal prosecution and prison time.