Common types of social security fraud allegations often stem from accusations of intentionally deceiving the Social Security Administration (SSA) to obtain benefits.
However, not every case involves deliberate wrongdoing. Many investigations begin with a misunderstanding, a clerical error, or a misinterpretation of complex reporting requirements.
These situations can quickly escalate into serious federal charges, leaving individuals to navigate a system that feels stacked against them.
Legal insights from a Fort Worth social security fraud lawyer at Fulgham Hampton can help untangle the facts, challenge the allegations, and work toward a resolution that protects your rights and future.
Key Takeaways About Legal Representation in Common Types of Social Security Fraud
- Intent Defines the Crime: A fraud investigation under 42 U.S.C. § 408 focuses on whether there was an "intent to defraud." A simple mistake in a disability application is different from a deliberate scheme. A federal fraud defense attorney in Tarrant County can build a defense centered on challenging the government's evidence of criminal intent.
- Penalties Are Severe: A conviction for social security fraud in Texas can result in up to five years in federal prison and fines up to $250,000 per offense. Restitution, or paying back the benefits received, is also a common part of sentencing.
- A Lawyer Can Challenge the Charges: A criminal defense attorney can scrutinize the Office of Inspector General's investigation, identify weaknesses in the prosecution's case, and argue for lesser charges or a case dismissal. They can also represent you in federal court for a social security fraud case in Texas.
- Unreported Changes Are a Major Red Flag: One of the most frequent issues is the failure to report income or changes in living situations to the SSA. Unreported work while on disability or continuing to receive a deceased relative's benefits are common scenarios that trigger federal investigations.
What is Considered "Social Security Fraud" in Texas?
Social Security fraud occurs when an individual intentionally makes false statements or conceals information to obtain or increase benefits from the Social Security Administration (SSA). The core of the issue is deception for financial gain. Unlike a simple mistake, fraud involves a deliberate act to mislead.
For example, a person might misreport their income to appear eligible for Supplemental Security Income (SSI), a needs-based program that provides financial assistance to individuals with limited income and resources.
Or someone could continue collecting a deceased parent’s Social Security Disability Insurance (SSDI) benefits without notifying the government. These actions are not just bending the rules; they are federal offenses.
The SSA’s Office of the Inspector General (OIG) investigates these cases. An investigation can be triggered by data analytics, tips from the public, or inconsistencies found during routine reviews.
What may start as a letter about a Social Security overpayment dispute can escalate into a full-blown federal Social Security fraud investigation, putting your financial stability and personal freedom at risk.
Common Types of Social Security Fraud You May Be Charged With in Texas
Accusations of fraud can arise from a wide range of situations. Many individuals facing charges never intended to break the law, but found themselves caught in a complex system.
False Statements to Obtain Benefits
This is one of the most direct forms of fraud. It involves providing untrue information on an application for benefits. This could mean lying about a disability, concealing other sources of income, or hiding assets.
For instance, exaggerating a medical condition to qualify for disability benefits is a common scenario that leads to disability benefits fraud accusations. The government must prove that the statements were not just inaccurate but made with the intent to deceive.
Failure to Report Changes
Once you begin receiving benefits, you have an ongoing responsibility to report changes that could affect your eligibility.
A failure to report income from a new job while receiving social security benefits is a classic example. Other reportable changes include improvements in a medical condition, a change in marital status, or changes to your living situation.
Many people are unaware of these reporting requirements, but ignorance of the law is not a defense. This is where a misunderstanding versus fraud argument becomes critical, and a lawyer can help demonstrate that there was no intent to defraud the SSA.
Misuse of Benefits by a Representative Payee
A representative payee is a person appointed by the SSA to manage benefits for someone who cannot do so themselves, such as a minor or an individual with a severe disability.
Representative payee misuse of benefits happens when the payee uses the funds for their own needs instead of for the beneficiary. This constitutes a breach of fiduciary duty and is considered a serious form of fraud.
An investigation into representative payee fraud will examine bank records and expenses to determine how the money was spent.
Collecting Benefits for a Deceased Person
Continuing to receive a deceased relative’s benefits is a federal crime. When a person passes away, their eligibility for benefits typically comes to an end. Banks and family members are supposed to notify the SSA.
Cashing checks or using direct deposits intended for someone who has passed away is often presumed to be a clear-cut case of fraud. These situations often result in charges for theft of government property, in addition to social security fraud.
Identity Theft and Fraudulent Use of an SSN
This category involves using someone else's Social Security number (SSN) to gain employment or apply for benefits. It can also include creating fake identities to file multiple claims.
These schemes often involve sophisticated methods and can result in related charges, such as aggravated identity theft. A social security conspiracy charge may be filed if multiple people worked together to carry out the fraud.
Legal Consequences of Social Security Fraud
An allegation of social security fraud is not just a disagreement over benefits; it is a federal criminal matter. The penalties reflect the seriousness of the offense. A conviction can have consequences that follow you for the rest of your life.
The primary federal statute that addresses social security fraud conviction is 42 U.S.C. § 408, outlining potential penalties such as:
- Federal prison time: Penalties can include up to five years in federal prison for each count of fraud. In cases involving large sums of money or other related crimes, the sentence can be much longer.
- Fines: Fines can be as high as $250,000 for an individual. For a corporation or group, the fines can be even higher.
- Restitution: If convicted, you will likely be ordered to pay back all the money you wrongfully received. This is known as restitution in social security fraud cases. This debt is owed to the government and is typically not dischargeable in bankruptcy.
- A permanent criminal record: A felony conviction creates a permanent criminal record that can impact your ability to secure employment, obtain housing, or obtain professional licenses.
Because these cases are handled in federal court, the process is different from state-level criminal proceedings. Federal prosecutors have significant resources, and the Office of the Inspector General builds its cases carefully.
However, you aren't without legal recourse. A fraud charges lawyer can help fight back against the narrative to protect your freedoms and future. Schedule a free case evaluation with a criminal defense attorney in Texas to learn more about your legal rights and options.
How a Lawyer Can Help With Social Security Fraud Cases
Facing a federal investigation can be an isolating experience. However, an accusation is not a conviction. A criminal defense attorney with experience in federal court can protect your rights and challenge the government's case.
A lawyer’s role begins long before a trial. Early intervention during an SSA fraud investigation can make a significant difference. Your attorney can communicate with federal agents on your behalf, preventing you from making statements that could be used against you.
Key defense strategies include:
- Challenging intent: A primary task is to argue that there was a lack of intent. Your lawyer can present evidence that any inaccuracies were the result of a clerical error, a genuine mistake in a disability application, or a misunderstanding of the complex rules, not a deliberate plan to defraud.
- Disputing the evidence: The government's case is built on documents, financial records, and witness testimony. A federal fraud defense attorney in Tarrant County will scrutinize this evidence, looking for errors or violations of your constitutional rights. If evidence was obtained illegally, it may be possible to have it suppressed.
- Negotiating a resolution: Not all cases go to trial. An attorney can negotiate with the prosecutor for a reduction of charges or a favorable plea agreement. This might involve agreeing to pay restitution in exchange for a lesser sentence or avoiding prison time altogether. A lawyer can help in negotiating a social security fraud plea that minimizes the long-term damage.
- Presenting mitigating factors: If a conviction seems likely, your lawyer can present mitigating factors to argue for a more lenient sentence. This could include a clean prior record, health problems, or family responsibilities. The goal is to mitigate the sentence for social security fraud as much as possible.
A lawyer acts as your advocate, ensuring your side of the story is heard and your rights are protected throughout the complex legal process.
FAQs About Social Security Fraud Charges in Texas
What should I do if I’m under investigation for social security fraud?
You have the right to remain silent and the right to consult with a lawyer. Anything you say can be used against you. A lawyer can manage communications with investigators and protect your rights.
Can I face federal charges for Social Security fraud?
Social security fraud is typically prosecuted as a federal crime. Cases are typically handled in a U.S. District Court. Federal criminal procedure is complex and has its own set of rules and guidelines, which is why representation from a lawyer familiar with the federal system is so valuable.
What happens if I unknowingly commit social security fraud?
The government must prove you acted with intent to defraud. If you can show that the error was an honest mistake or the result of confusion about the rules, it can serve as a powerful defense. An attorney can help gather evidence to support a claim of unintentional error.
How can a lawyer help reduce penalties in a Social Security fraud case?
An attorney can work to reduce penalties by challenging the amount of alleged fraud, arguing for a downward departure from federal sentencing guidelines, or negotiating a plea agreement that avoids the most severe consequences. They can also present personal circumstances and character evidence to the judge to advocate for a lighter sentence, such as probation instead of prison.
Protecting Your Future When Facing Social Security Fraud Allegations
Allegations of social security fraud can feel overwhelming, but they don’t have to define your future. Whether the issue stems from a misunderstanding, a clerical error, or more serious accusations, the stakes are high, and the legal process can be daunting.
The team at Fulgham Hampton Criminal Defense Attorneys understands the complexities of social security fraud cases and the challenges individuals face when navigating federal investigations.
From challenging the evidence to negotiating favorable outcomes, their insights and strategies are tailored to protect your rights and work toward the most favorable resolution possible under your specific circumstances.
If you’re ready to take the next step in addressing your case, contact Fulgham Hampton Criminal Defense Attorneys today for a confidential consultation to discuss your legal rights and options for protecting your future.
Legal Resources About Insurance Fraud Charges in Fort Worth, TX
Navigating a fraud accusation requires reliable information. These attorney-curated resources provide valuable insights into the legal system and emphasize the importance of professional guidance:
- How to Defend Against Texas Insurance Fraud Charges
- Can I Clear My Criminal Record? What Is Expungement?
- How to Choose a Criminal Defense Lawyer
For personalized legal guidance tailored to your specific situation, contact Fulgham Hampton Criminal Defense Attorneys. A proactive defense strategy is the first step toward protecting your freedom.