Penalties for Defrauding the Social Security System
Social Security fraud occurs whenever someone illegally applies for or receives benefits from the Social Security Administration (SSA), or whenever someone manipulates the Social Security system for personal gain. Various actions can be considered defrauding the Social Security system, including: making false statements on applications; hiding the fact someone has died in order to continue receiving the decedent's benefits; misusing someone else's benefits; or committing identity theft and using another person's Social Security number.
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Fines
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The first type of penalty someone found guilty of committing Social Security fraud faces is a monetary fine. Section 143.2 of the Social Security Handbook states that the monetary fine will range from $500 to $10,000. The specific fine imposed will depend on which law is violated. The government also can sentence the defendant to imprisonment.
Imprisonment
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The second kind of penalty typically imposed on individuals found guilty of Social Security fraud is physical imprisonment. According to Section 143.2 of the Social Security Handbook, imprisonment can range from one year to as many as 15 years, depending on the nature of the law violated. The government additionally can impose monetary fines on the defendant.
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Restitution
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Federal law also allows courts to impose further monetary penalties against those found guilty of defrauding the Social Security system in the form of restitution to the Commissioner of Social Security. For this to occur, however, the offense must have caused Social Security benefits to have been wrongfully paid or an individual to have suffered financial loss because of the defendant's fraudulent action while serving as the affected individual's representative payee.
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References
Resources
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