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Missoula, MT – Social Security Benefits Scam Exposed
Virginia Kathleen Pearson, a 56-year-old Philipsburg woman, has admitted to lying about her living arrangements and assets to receive more Social Security Administration (SSA) benefits and other federal aid than she was entitled to. According to U.S. Attorney Leif M. Johnson, Pearson pleaded guilty to false statements to a government agency as charged in an indictment.
Pearson faces a maximum of five years in prison, a $250,000 fine, and three years of supervised release. A plea agreement reached in the case calls for the government to seek dismissal of remaining counts of health care fraud, theft of government money, and Social Security fraud at sentencing if the court accepts the agreement. Pearson also agrees to be responsible for full restitution of approximately $142,542.
The government alleged that in 2006, Pearson applied for Social Security Income (SSI) from the SSA and was approved for benefits in 2008. Pearson reported that her husband lived with her in Philipsburg, and she started receiving SSA payments in a reduced amount because of her husband’s income. However, in September 2008, Pearson reported that her husband had left her household, and the SSA recalculated Pearson’s SSI, resulting in substantially larger payments.
Pearson received Cost of Living Adjustment letters notifying her that her payments would increase and of her obligation to report changes to her household composition and income. She also began receiving Supplemental Nutrition Assistance Program funds and Medicaid based on her representations that her husband did not live with her or provide her with financial assistance. However, an investigation found that Pearson and her husband jointly owned the Philipsburg residence and that rent should not have been deducted from Pearson’s resources.
Pearson initially denied her husband lived at her house but later admitted he stayed there about 50 percent of the time. Pearson also admitted she knew she had to report changes in her household to SSA. Pearson’s misrepresentations resulted in an overpayment of SSI in the amount of $101,136, SNAP funds totaling $23,203, and Medicaid reimbursement of $18,203.
The case was investigated by the Social Security Administration Office of the Inspector General and Montana Department of Public Health and Human Services. Assistant U.S. Attorney Karla E. Painter is prosecuting the case. Pearson was released on conditions pending further proceedings, with a sentencing date set for September 1 before U.S. District Judge Donald W. Molloy.
Key Facts
- State: Montana
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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